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Proskauer's ERISA Practice Center Blog The View from Proskauer on Developments in the World of Employee Benefits, Executive Compensation & ERISA Litigation

USSC to Consider Presumption of Prudence in Employer Stock Litigation

Posted in Moench, Presumption of Prudence, Supreme Court

On Friday, the US Supreme Court agreed to consider Fifth Third Bancorp v. Dudenhoeffer (U.S. No. 12-751, cert. granted 12/13/13).  The Supreme Court stated that it will consider the following issue:  “Whether, to state a claim that a fiduciary of an employee stock ownership plan violated the duty of prudence by continuing to invest plan assets in the employer’s stock, a plaintiff must rebut a presumption that the fiduciary acted prudently by alleging that the employer faced imminent financial peril?”  Click here for a summary of the Sixth Circuit’s decision.