ESOP Legal News - June 2012 • Volume 1, Number 3

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INSIDE THIS ISSUE:

-District court upholds prudence claim, dismisses communications and monitoring claims brought by participants in Community National Bank Corporation Employee Stock Ownership Plan;

-Eleventh Circuit adopts presumption of prudence, upholds district court judgment dismissing claims brought by participants in Home Depot, Inc. Employee Stock Ownership Plan;

-Second Circuit upholds district court judgment dismissing claims brought by participants in JP Morgan 401(k) Savings Plan;

-District court applies presumption of prudence at pleadings stage to dismiss claims alleging breach of fiduciary duty brought by participants in Sovereign Bankcorp, Inc. Employee Stock Ownership Plan;

-Department of Labor files complaint alleging breaches of fiduciary duties and prohibited transactions;

-Assistant Secretary of Department of Labor lists ESOPs as audit priority, discusses re-proposal of regulation redefining term “Fiduciary”;

-Pro-ESOP Legislation Garners Support.

Excerpt from District Court Upholds Prudence Claim, Dismisses Communications and Monitoring Claims Brought by Participants in Community National Bank Corporation Employee Stock Ownership Plan:

On May 10, 2012, the United States District Court for the Middle District of Florida issued an Opinion granting in part and denying in part a motion to dismiss claims brought by participants in the Community National Bank Corporation Employee Stock Ownership Plan against members of the board of directors and officers of the sponsor corporation.

Please see full newsletter below for more information.

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Published In: Administrative Agency Updates, Business Torts Updates, Civil Procedure Updates, Labor & Employment Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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