Constellation Escapes ERISA Action Over Stock Drop

Law360, New York (August 16, 2010, 12:00 PM EDT) -- A federal judge has thrown out a putative class action that alleged Constellation Energy Group Inc., which experienced a precipitous decline in its stock price in 2008, violated federal labor law by investing employee pensions in company stock.

Judge Catherine C. Blake of the U.S. District Court for the District of Maryland on Friday found that the company and its executives did not breach the Employee Retirement Income Security Act.

According to the plaintiffs, Constellation stock was trading at $92 a share in January 2008, the...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.