Lehman Officials Dodge Employee Stock Action In 2nd Circ.
By Max Stendahl
Law360, New York (July 15, 2013, 1:28 PM ET) -- The Second Circuit ruled Monday that managers of employee benefit plans have no duty to seek out nonpublic information about investments because doing so may lead to insider trading, dismissing a class action over a Lehman Brothers Holdings Inc. plan that held the firm’s stock before it went bankrupt.
A three-judge panel rejected claims that Lehman directors and members of an employee benefit plan committee wrongly continued to invest in Lehman stock before the company failed in September 2008. According to the panel, the defendants had...