Sanofi Defeats ERISA Stock-Drop Challenge
A federal judge ruled the lead plaintiff does not have standing to bring his claim because he never purchased or sold ADRs of Sanofi during the alleged period...
Tag: ESOPs
District Court to Take Another Look at BP Stock Drop Suit
An appellate court has sent the case back to a lower court after finding that BP's ESOP participants did not meet all pleading standards set by the U.S....
Antioch Company Cleared of Wrongdoing in ESOP Transaction
Employees of Antioch sued the company over a transaction to make the ESOP 100% employee-owned years before the company filed bankruptcy.
SunTrust Stock-Drop Challenge Certified As Class Action
Key aspects of the ERISA-based complaint are back under consideration in light of the Supreme Court's 2014 decision in Fifth-Third Bancorp vs. Dudenhoeffer.
ESOP Participants Not Allowed to Sell Shares Under Bankruptcy Plan
Terms of Conco Inc.'s reorganization plan do not allow ESOP participants to sell shares to a third party, a court found.
‘Unfair’ ESOP Valuations Drive $7M Settlement with EBSA
The recent judgement against AIT Laboratories adds nearly $3.5 million to previous collections, now totaling more than $7 million.
ESOP Fiduciaries Don't Escape Liability for Mispriced Stock Purchases
An appellate court agreed with a lower court that the fiduciaries failed to act in participants’ best interest and to monitor providers.
Kodak Settles ERISA Stock Drop Suit
According to the settlement agreement, more than 21,000 class members will share in the nearly $10 million payment.
Fifth Third Standard Applies to Closely Held Company Stock Suits
A district court judge said her reading of the U.S. Supreme Court's decision in Fifth Thirdv. Dudenhoeffer does not preclude application of the "alternative action" standard to closely...
ESOP Attorney Restricted in Advising Plan Fiduciaries
Johanson agreed to some of the broadest restrictions the department has sought to date on an attorney's ability to advise parties concerning transactions that involve employee benefit plans...
Improper ESOP Purchases Targeted by DOL
An EBSA investigation led to Gruber Systems Inc. having to repay more than $1 million in participant losses in the company’s employee stock ownership plan.
Principal Unveils ‘HD’ ESOP Repurchase Liability Modeling
ESOP repurchase liability can be difficult to predict and measure, making a real headache for plan sponsors.
BP Deepwater Stock Drop Suit Gets DOL and SEC Consideration
The complicated litigation Whitley v. BP PLC is just the latest stock drop case to be impacted by the big-ticket Supreme Court decision in Dudenhoeffer v. Fifth Third...
SCOTUS Again Remands Stock Drop Case
The Supreme Court returned Amgen’s ESOP case to the lower court for a second time.
DOL Files Suit Over Employer Stock Valuation
The U.S. Labor Department filed a lawsuit against a Florida employer accused of imprudence in the valuation and sale of the company’s stock to its own employees.
ESOP Participants, Assets Up
There is a slight uptick in the number of active participants, and the value of plan assets has been trending up, NCEO data shows.
State Street’s Handling of GM Stock for 401(k) Gets Court Blessing
After much back and forth, an appellate court has finally dismissed a lawsuit against State Street Bank and Trust Company over its handling of the employee stock ownership...
Duty to Monitor Fiduciaries Does Not Include Duty to Inform
BP has won dismissal of several claims that it failed to monitor fiduciaries who oversaw company stock investments in its retirement plans.
ESOP Participants’ Breach Claims Not Supported
Participants in an ESOP that purchased shares with a loan from the sponsoring employer made allegations that were not backed by evidence, a court found.
Company Stock Continues to Present Client Challenges
Retaining the stock may be best despite litigation risk—and advisers can show the plan sponsor how to do company stock in DC plans the right way.