A former employee who has "cashed out" his 401(k) plan retains standing to sue the administrator of the plan under the Employee Retirement Income Security Act (ERISA) for alleged mismanagement of the fund, the 3d U.S. Circuit Court of Appeals has ruled. The suit alleged that the company's stock price plummeted in 2004 as the result of a risky and ultimately failed merger and that the administrators made false and misleading statements about the merger causing the plaintiff Graden and others to invest.
August 13, 2007 at 12:00 AM
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The original version of this story was published on National Law Journal
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