The Labor Department has spent almost six years clearing a Puerto Rico 401(k) plan's sale of stock rights that raised $6,550.33 for its members

The relief takes effect on 10 September 2020 and expires on 16 September 2020. It was signed this month.

The Employee Benefits Security Administration filed prohibited transaction exemption 2026-07 for public inspection on 20 August. It permits the Liberty Puerto Rico 401(k) Savings Plan, of San Juan, to have acquired, held and sold rights to buy shares in Liberty Latin America Ltd during that week almost six years ago. Absent the exemption, the department states, those transactions would have been prohibited by the Employee Retirement Income Security Act of 1974, the Internal Revenue Code of 1986, or both.

The transaction

Liberty Latin America ran a rights offering from 10 to 16 September 2020. Every holder of its Series A and Series C common stock, the plan included, received 0.2690 rights for each share held. A right bought one Series C share at $7.14, which the notice describes as a 25 percent discount to the volume weighted average trading price of the Series C stock over the three days from 31 August to 2 September. Divide the one figure by the other and the implied average price is $9.52.

The plan fiduciaries did not exercise. They directed the sale of the rights on the open market before the offering closed, and participants received $1.062675 per right, allocated to accounts in proportion to the rights each participant held.

What it came to

Six thousand five hundred and fifty dollars and thirty three cents. That is the total net proceeds the applicant represents participants received, and it is the whole benefit the exemption exists to protect. Two further numbers follow from arithmetic on the department's own figures rather than from anything it published: at $1.062675 a right, that total implies roughly 6,164 rights, and at 0.2690 rights a share, roughly 22,900 shares of Liberty Latin America held across the plan.

The proposed exemption ran in the Federal Register on 3 June 2026, with comments and hearing requests invited by 10 July. Nobody commented. Nobody asked for a hearing.

The department grants only the relief specified, and it takes care to say the exemption does not touch the general fiduciary duties in section 404 of the Act. It also notes that if any material statement in the record stops being accurate, the applicant must tell the department immediately.