ERISA Suit Over Flagstar Plan's Stock Holdings Nixed

Law360, New York (April 1, 2011, 4:53 PM EDT) -- A Michigan federal judge on Thursday tossed a proposed Employee Retirement Income Security Act class action accusing Flagstar Bancorp Inc. of breaching its fiduciary duty of prudence by pouring money into shares of the savings and loan company even as they plunged in value.

In a ruling Thursday, Judge Paul D. Borman of the U.S. District Court for the Eastern District of Michigan granted Flagstar's motion to dismiss the case after finding that because each plaintiff had total control over the investments in his or her...
To view the full article, register now.