A federal district court judge found that additional allegations that alternatives to continuing to offer the company stock would lead plan fiduciaries to find they would not do more harm than good were not context-specific enough to the case.
Tag: company stock in retirement plans
The court found plaintiffs failed to state a claim for relief based on ERISA’s duty to diversify and failed to state a claim for failure to engage in an adequate process for evaluating the prudence of continuing to hold the ConocoPhillips Funds.
The lawsuit alleges that Gannett Co., its benefit plans committee and other fiduciaries’ decision to concentrate plan investments in Gannett’s parent company common stock was a breach of their fiduciary duties under ERISA and caused a loss of approximately $135 million.
In addition to a monetary payment of $4.75 million, the bank agreed to non-monetary terms regarding payment and vesting of matching contributions to its 401(k) plan.
The court found participant claims did not meet standards set forth in Fifth Third Bank v. Dudenhoeffer.
Another employer win in a stock drop suit indicates it is tough for retirement plan participants to meet the pleading standards set forth in Fifth Third v. Dudenhoeffer.