SunTrust Tries To Defuse Subprime ERISA Action

Law360, New York (December 11, 2009, 3:15 PM EST) -- SunTrust Banks Inc. has asked a federal judge to toss a consolidated putative class action that accuses the bank of squandering hundreds of millions of dollars of employee retirement savings, saying the plaintiffs are concocting liability where none exists.

SunTrust and a handful of executives filed a motion Thursday in the U.S. District Court for the Northern District of Georgia urging Judge Beverly B. Martin to dismiss the suit, which claims that they imprudently invested retirement benefits in company stock despite rampant subprime-mortgage exposures.

The plaintiffs...
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