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Stock Drop Litigation Fiduciary Duty

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

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

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

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

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

Proskauer - Employee Benefits & Executive...

U.S. Supreme Court Agrees to Hear IBM’s Challenge to Second Circuit Ruling in ERISA Stock-Drop Suit

In December 2018, we reported here that the Second Circuit became the first court at any level to allow an ERISA stock-drop claim to survive a motion to dismiss since the Supreme Court revamped the pleading standard for such...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Courts these days want to see something more

The 9th Circuit upheld the dismissal of a complaint by participants in the Walt Disney Co. 401(k) plan that Disney violated their fiduciary duty by offering the Sequoia Fund, a mutual fund that had plummeted in value....more

Proskauer - Employee Benefits & Executive...

Second Circuit Revives Dismissed ERISA Stock-Drop Suit

The Second Circuit reinstated a claim for breach of fiduciary duty under ERISA brought by participants in IBM’s 401(k) plan who suffered losses from their investment in IBM stock. Jander v. Retirement Plans Committee of IBM,...more

Seyfarth Shaw LLP

Second Circuit Gives New Life to Stock Drop Claim

Seyfarth Shaw LLP on

Seyfarth synopsis: The Second Circuit reversed dismissal of an ERISA stock drop class action finding plaintiff alleged enough to plausibly show that disclosure of alleged corporate problems would not have done more harm than...more

Fox Rothschild LLP

ESOP Trustees And Administrators: Draft Your Plans Strategically

Fox Rothschild LLP on

One challenge faced by ESOP trustees and administrators in recent years are challenges from the plaintiff’s bar in the form of class action lawsuits frequently filed by attorneys representing purported classes of participants...more

Proskauer - Employee Benefits & Executive...

Fifth Circuit Affirms Dismissal of ERISA Stock Drop Action

The Fifth Circuit agreed that a participant in Idearc’s 401(k) plan failed to plausibly plead that the plan fiduciary’s failure to act on publicly available information about Idearc amounted to a breach of fiduciary duty in...more

Skadden, Arps, Slate, Meagher & Flom LLP

Inside the Courts – An Update From Skadden Securities Litigators - March 2018/ Volume 10 / Issue 1

This quarter's issue includes summaries and associated court opinions of selected cases principally decided between November 2017 and January 2018. The cases address developing trends in appraisal, class certification, core...more

Robins Kaplan LLP

Your Daily Dose of Financial News

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The European Commission has drafted a new set of digital taxes as an answer to last year’s US tax overhaul that imposed a new minimum tax on the overseas efforts of companies with US operations. The EU’s plan would require...more

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