The decision of plan fiduciaries to continue offering employees the chance to invest in Citigroup stock heading into the subprime mortgage meltdown was not an abuse of discretion, a federal appeals court ruled yesterday.
The U.S. Court of Appeals for the Second Circuit said Citigroup fiduciaries did not violate the Employee Retirement Income Security Act (ERISA) by continuing to offer the stock, nor did they have an affirmative duty to disclose nonpublic information on the expected performance of Citigroup shares.
