6th Circ. Revives ERISA Action Over Flagstar Stock Loss

Law360, New York (July 23, 2012, 3:26 PM EDT) -- The Sixth Circuit on Monday reinstated an Employee Retirement Income Security Act class action alleging savings and loan company Flagstar Bancorp Inc. imprudently allowed employees to invest in its shares even as they plummeted in value.

A three-judge panel reversed a Michigan federal judge’s March 2011 order dismissing the suit on the grounds that Flagstar was protected by a presumption that investments in its stock were prudent, and that it did not have control over the 401(k) investment choices of individual employees.

The Sixth Circuit said...
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