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
Presumption of Prudence
Second Circuit Dismisses Lehman Brother’s ERISA Stock-Drop Action
By Joseph Clark & Russell Hirschhorn on
The Second Circuit recently affirmed the dismissal of former Lehman Brothers employees’ fiduciary breach claims relating to their investment in the Lehman Brothers stock fund through their 401(k) plan. Rinehart v. Akers, 2013 WL 3491281 (2d Cir. July 15, 2013). As is typical for cases of this type, the complaint included both a claim…
Fifth Circuit Applies Moench Presumption of Prudence at Motion to Dismiss Stage
By Michael Spencer on
The Fifth Circuit recently joined four other circuits (the Second, Third, Seventh and Eleventh Circuits) in holding that the presumption of prudence applicable in employer stock fund cases is appropriately applied at the motion to dismiss stage of a litigation. Kopp v. Klein, 2013 WL 3449866 (5th Cir. July 9, 2013). Applying the presumption,…