Lessons In Fiduciary Duty From Employee Stock Plan Ruling

By Joshua Sutin, Katherine Noll and Lauren Parker (May 14, 2021, 3:31 PM EDT) -- Two immediate lessons come to mind after reading Wilmington Trust NA v. Stout Risius Ross Inc.

Filed on March 23, the U.S. District Court for the Southern District of New York opinion and order involved a valuation of an underlying employer stock that was found to contain material defects. 

The trustee of the employee stock ownership plan, a qualified plan, who conducted the transaction on behalf of the plan participants did not carry out their duties in reviewing the valuation. The trustee was found in breach and paid to settle the judgment.

In turn, the trustee then sued the independent appraiser under...

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