Courts Favor Employers On Prudence In ESOP Suits

Law360, New York (June 14, 2010, 1:57 PM EDT) -- A 20-year study of litigation involving employee stock ownership and 401(k) plans has found that courts generally side with employers when it comes to granting a presumption of prudence in holding company stock.

But courts have generally sided with plaintiffs when it comes to granting former participants standing, according to the June report from the National Center for Employee Ownership, a private nonprofit research group based in Oakland, Calif.

The report analyzed 141 cases involving private company ESOPs and 34 involving public company plans from 1990...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.