ERISA Action Targets Flagstar Plan's Stock Holdings

Law360, New York (February 12, 2010, 1:05 PM EST) -- A Georgia woman who used to work for Flagstar Bancorp Inc. has launched a proposed class action accusing the Michigan-based savings and loan company's retirement plan of breaching its fiduciary duty by pouring money into company shares even as they plunged in value.

Debra Griffin's lawsuit, filed Thursday in the U.S. District Court for the Eastern District of Michigan, says that in December 2006 the retirement plan was worth more than $89 million but by December 2008 the plan's value had fallen to just over $62...
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