Sallie Mae Workers Lose 2nd Circ. Bid To Revive ERISA Suit

Law360, New York (January 17, 2013, 7:43 PM EST) -- Sallie Mae Corp. does not have to face a class action alleging the student lender's bad loans sunk its employee retirement plan, the Second Circuit said Wednesday, ruling that the plan did not have to dump its Sallie Mae holdings.

A panel of appeals court judges declined to revive a lawsuit alleging that Sallie Mae's plan administration violated their Employee Retirement Income Security Act duties by investing in Sallie Mae stock even as the lender doled out subprime loans that weakened its portfolio.

Plan members sued...
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