Grace Fund Mgr. Passed 'Prudent Man' Test: 1st Circ.

Law360, New York (January 30, 2009, 12:00 AM EST) -- A federal appeals court has rejected a bid by investors in W.R. Grace & Co.'s pension plan to reinstate their unorthodox Employee Retirement Income Security Act case claiming that Grace and its investment manager breached their fiduciary duty by selling a stock just before the price increased.

On Thursday the U.S. Court of Appeals for the First Circuit upheld the trial court's decision to toss the case after ruling that State Street Bank and Trust Co. and Grace had both acted prudently and met their duties...
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