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Employee Retirement Income Security Act (ERISA) Stock Drop Litigation

Faegre Drinker Biddle & Reath LLP

Thinking ESOPs: Why Aren’t Courts Conducting the 'Context-Specific' Inquiry Into Complaints That the Supreme Court Requires?

Recently, several appellate-level court decisions have affirmed dismissals of ERISA fiduciary-breach claims involving 401(k) plans. These decisions followed the Supreme Court’s decision earlier this year in a 403(b) case, in...more

Groom Law Group, Chartered

Division of Fiduciary Duties Proves Key to Success in Stock Drop Lawsuit

On August 1, 2022, the United States Court of Appeals for the Seventh Circuit affirmed the lower court’s dismissal of a “stock drop” lawsuit against Boeing. The Seventh Circuit based its conclusion on the fact that an...more

Proskauer - Employee Benefits & Executive...

Seventh Circuit Affirms Dismissal of ERISA Stock-Drop Case

Since the Supreme Court’s ruling in Fifth Third Bancorp v. Dudenhoeffer, courts around the country have overwhelmingly rejected ERISA fiduciary-breach claims by 401(k) plan participants seeking relief related to investments...more

Faegre Drinker Biddle & Reath LLP

ERISA Litigation Roundup: Federal District Court Dismisses ERISA Stock-Drop Suit

On September 30, 2021, the U.S. District Court for the District of Connecticut dismissed an ERISA stock-drop lawsuit brought against alleged fiduciaries of Aetna, Inc.’s (Aetna’s) employee stock ownership plan (ESOP), holding...more

Faegre Drinker Biddle & Reath LLP

ERISA Litigation Roundup: Northern District of Illinois Dismisses ERISA Stock-Drop Suit

On August 23, 2021, the U.S. District Court for the Northern District of Illinois dismissed an ERISA stock-drop lawsuit brought against fiduciaries of Kraft Heinz Food Company’s employee stock ownership plan (ESOP), holding...more

Proskauer - The Capital Commitment

The Portfolio Company Playbook – Chapter 3: Navigating Risk from Company Employee Claims

Another source of litigation risk for fund sponsors are claims brought by portfolio company employees. Sponsors should be aware of these risks, particularly when the portfolio company is in distress or is considering a sale...more

Jackson Lewis P.C.

Failure To Identify Specific Viable Alternative Action Dooms Stock Drop Claim

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The Ninth Circuit recently affirmed the dismissal of an ERISA employer-stock drop putative class action, holding that the plaintiff’s failure to identify specific, viable alternative actions that plan fiduciaries should have...more

Skadden, Arps, Slate, Meagher & Flom LLP

Securities Litigation and Regulatory Enforcement Update

On December 8, 2020, Skadden held the fourth and final installment of its annual Securities Litigation and Regulatory Enforcement Update, “Developments and Trends in Securities Litigation: A Year-End Update for 2020 and a...more

Skadden, Arps, Slate, Meagher & Flom LLP

Despite Pandemic-Related Disruptions, Securities Class Action Filings Remain High With No Signs of Slowing

Despite unprecedented disruptions to the court system from the COVID-19 pandemic, plaintiffs continued to bring securities class actions at elevated levels in 2020 — a sign that filings will remain high in the year ahead....more

Verrill

Supreme Court Declines to Address Pleading Standards in Stock-Drop Litigation – Retirement Plans Committee of IBM v. Jander...

Verrill on

On November 9, 2020, the Supreme Court declined to consider an appeal from the Second Circuit Court of Appeals in Retirement Plans Committee of IBM v. Jander, leaving unresolved for now questions about the specificity...more

Proskauer - Employee Benefits & Executive...

Delegating Fiduciary Responsibilities Related to ESOP Results in Dismissal of ERISA Stock-Drop Claims

Among the many lawsuits Boeing confronted following the disclosure of problems with the 737 Max was a class action brought by participants in the Boeing Voluntary Investment Plan who invested in the Boeing ESOP. The...more

Dechert LLP

A Look at the Current State of ERISA Class Action Litigation

Dechert LLP on

This OnPoint is the first in a series that will examine important trends and developments in class action litigation under the Employee Retirement Income Security Act of 1974 (ERISA).  Here, we look at the current litigation...more

Vinson & Elkins LLP

Stock Drop Litigation Cases Are On The Rise: Will Your Retirement Plan Be A Target?

Vinson & Elkins LLP on

Key Takeaways- •Stock price plunges caused by COVID and current market conditions create fertile ground for stockholder litigation, including claims by participants in retirement plans funded with employer securities that...more

Nilan Johnson Lewis PA

Employers: Watch Out for ERISA Lawsuits During Pandemic

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ERISA lawsuits typically grow in numbers whenever there is an economic downturn. Though COVID-19’s financial impact is still unfolding, employer-sponsored employee-stock ownership plans (ESOPs) and the employers themselves...more

ArentFox Schiff

Supreme Court Opinion Sheds No Light on Elusive Stock-Drop Pleading Standard

ArentFox Schiff on

In January, the Supreme Court issued its highly anticipated opinion in Retirement Plans Committee of IBM v. Jander, No. 18-1165, a case that promised to clarify the pleading standard applicable to ERISA stock-drop cases. But...more

Skadden, Arps, Slate, Meagher & Flom LLP

Skadden's 2020 Insights

Despite political and economic uncertainties, markets and deal activity were resilient in 2019, and strong fundamentals remain in place heading into 2020. Companies continue to face a challenging litigation and enforcement...more

Skadden, Arps, Slate, Meagher & Flom LLP

Securities Class Action Filings Continue Record Pace

Several securities litigation trends over recent years show no signs of abating in 2020. Federal securities class action filings seem likely to remain at elevated levels. Last year, for the third consecutive year, more than...more

Skadden, Arps, Slate, Meagher & Flom LLP

2019-20 Supreme Court Update

The U.S. Supreme Court’s 2019-20 term is receiving substantial attention for cases involving signature initiatives of President Donald Trump’s administration. But the Court also maintains an extensive docket directly relevant...more

American Conference Institute (ACI)

[Event] ERISA Litigation – Valuable insights on how to prevent, manage and defend against rising, costly ERISA disputes - November...

Ensure that You are Equipped with the Latest Updates and Strategies to Prevent, Manage and Defend Against Rising, Costly ERISA Disputes - This annual event is your best opportunity to gain best practices for your everyday...more

Goodwin

Federal Government Advocates Industry-Friendly Position in ESOP Stock Drop Supreme Court Case

Goodwin on

Recently, the U.S. Supreme Court granted a writ of certiorari to hear Retirement Plans Committee of IBM v. Jander, a case about the legal standard for pleading a claim for breach of fiduciary duties under the Employee...more

Littler

Does Jander Signal the Liberalization of Pleading Standards in Stock-Drop Cases? Signs Point to No

Littler on

The Second Circuit sent shock waves through the community of ERISA stock-drop practitioners late last year in Jander v. Retirement Plans Committee of IBM by finding plan participants had plausibly alleged a breach of duty of...more

Proskauer Rose LLP

ERISA Newsletter - Second Quarter 2019

Proskauer Rose LLP on

Editor's Overview - As the summer heats up, so too has the U.S. Supreme Court's docket for next term where it has already agreed to hear three ERISA cases and more may be in the works. On the docket already are ERISA...more

Seyfarth Shaw LLP

The Supreme Court Will Take Another Look At Its ERISA Stock-Drop Pleading Standard

Seyfarth Shaw LLP on

Synopsis: ERISA stock-drop litigation has diminished in recent years due to the Supreme Court’s Dudenhoeffer decision (and a rising stock market). Now, the Court will have another chance to weigh in on whether federal ERISA...more

Eversheds Sutherland (US) LLP

Supreme Court will again review the pleading standard for retirement plan “stock drop” claims

On June 4, 2019, the US Supreme Court granted the petition for writ of certiorari of the defendant fiduciaries in Retirement Plans Committee of IBM, et al. v. Larry W. Jander, No. 18-1165. The justices will review the Second...more

McDermott Will & Emery

US Supreme Court to Review Unusual Second Circuit Decision in Stock Drop Case Against IBM

McDermott Will & Emery on

On Monday, the US Supreme Court agreed to review the Second Circuit’s decision in Jander v. Retirement Plans Committee of IBM, a “stock drop” lawsuit against IBM’s benefit plan fiduciaries. The Second Circuit’s decision...more

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