In Lee v. Argent Trust Co., the court dismissed ERISA claims challenging an ESOP stock transaction because the plaintiff, who “fundamentally misunderstands the nature of the” ESOP transaction, did not allege that she suffered...more
8/13/2019
/ Article III ,
Class Action ,
Dismissals ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
ESOP ,
Failure To State A Claim ,
Former Employee ,
Securities Transactions ,
Standing ,
Subject Matter Jurisdiction ,
Trustees
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
6/11/2019
/ Breach of Duty ,
Certiorari ,
Employee Retirement Income Security Act (ERISA) ,
ESOP ,
Fiduciary Duty ,
IBM ,
Pleading Standards ,
Retirement Plan ,
SCOTUS ,
Standard of Care ,
Stock Drop Litigation
A recent summary-judgment decision explains how individual releases can bar the individual from pursuing ERISA fiduciary-breach claims on behalf of the plan. A plan, employer or fiduciary that wants to ensure a release that...more
5/20/2019
/ Breach of Duty ,
Depositions ,
Discovery ,
Employee Retirement Income Security Act (ERISA) ,
ESOP ,
Fiduciary Duty ,
Former Employee ,
Hiring & Firing ,
Release Agreements ,
Severance Agreements ,
Summary Judgment
On September 20, 2018, the US Supreme Court dismissed—pursuant to settlement—an ERISA lawsuit that could have resolved the circuit split over who holds the burden of proof in ERISA breach of fiduciary duty cases. In Pioneer...more
The US Department of Labor has taken the position that certain indemnification clauses are void against public policy under Section 410 of ERISA. This policy has been adopted by private plaintiff classes; as evident from a...more
The ESOP industry is paying close attention to a Tenth Circuit appeal that will address the deferral of corporate deductions for certain accrued expenses payable to ESOP-participating employees. This appeal, which pertains to...more
Through a series of recent settlements, the US Department of Labor has outlined the process steps fiduciaries should follow in connection with a transaction involving a purchase from, or sale to, an employee stock ownership...more