For the second time, the U.S. Court of Appeals for the Second Circuit dismissed a long-running case against directors of a Lehman Brothers pension plan, saying the U.S. Supreme Court’s reversal of its earlier dismissal did not change the circuit’s previous conclusion that “plaintiffs have failed to plausibly allege a breach of duty claim.”
The Supreme Court’s ruling in Fifth Third Bancorp v. Dudenhoeffer, 134 S. Ct. 2459 (2014) vacated a July 2013 Second Circuit ruling (NYLJ, July 16, 2013) that had granted the Lehman directors a “presumption of prudence,” shielding them from charges they had failed to anticipate that Lehman’s stock would crash as the 2008 financial crisis deepened.
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