Participants in 401(k) plans who invested in company stock only to see it plummet have been handed a procedural remedy. The 3rd U.S. Circuit Court of Appeals has ruled that participants can sue when their company's alleged fiduciary violations harm only those who chose the stock option. Deciding an issue that has divided federal courts across the country, the court found that §409(a) of ERISA gives the plaintiffs standing, and that §502(a)(2) allows them to recover damages.
3rd Circuit: Employees May Sue Under ERISA When Company's Stock Crashes
New Jersey Law Journal
August 30, 2005
This article requires premium access
This article requires premium access to Law.com. Please sign in or subscribe to read the full text.