The DC plan trust of Frontier Communications was 219-times more concentrated in Verizon stock than defendants felt was appropriate for the pension plan for which the company bore the investment risk, plaintiffs allege in a new stock drop lawsuit.
Tag: stock drop litigation
As in other recent stock drop litigation decisions, the plaintiff here ultimately failed to jump the high hurdle for standing set by Fifth-Third vs. Dudenhoeffer.
In dismissing the stock drop challenge, the judge offers an illuminating review of what is required by ERISA’s duty of prudence; discussion of counts alleging breaches of the duty of loyalty and the duty to monitor is much briefer.
While they won the day, defendants unsuccessfully argued that the Dudenhoeffer pleading standards should be applied not only to prudence claims, but to loyalty claims as well.