Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The number of class action lawsuits alleging breaches of fiduciary duty under the Employee Retirement Income Security Act (ERISA) has increased dramatically during the past decade. Initially fueled by large corporate scandals, such as Enron and WorldCom, most of these lawsuits accompany securities lawsuits and are filed following declines in the value of employer stock offered in corporate-defined contribution plans. These ERISA “stock drop” lawsuits typically allege that plan fiduciaries breached their duties by allowing participants to invest in company stock when the stock was an imprudent investment option for the plan. Plaintiffs usually assert that company stock was an imprudent investment because the company’s ongoing viability was in question and/or fiduciaries misrepresented or failed to disclose material information adversely affecting the value of the company’s stock.

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2017 ALM Media Properties, LLC. All Rights Reserved.