7th Circ. Overturns Kraft Win In ERISA Class Action

Law360, New York (April 11, 2011, 4:44 PM EDT) -- A divided Seventh Circuit panel on Monday reversed a win for Kraft Foods Global Inc. and its pension plan managers in a class action accusing them of mismanaging the funds.

Kraft did not conclusively show that its managers considered so-called investment drag and transaction drag to prevent the fund from losing money, the U.S. Court of Appeals for the Seventh Circuit said in a 2-1 ruling. The decision reverses a district court grant of summary judgment for Kraft.

The plaintiffs claim that Kraft's way of structuring...
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