KeyCorp Escapes ERISA Stock Drop Action By Workers

Law360, New York (January 30, 2013, 5:41 PM EST) -- An Ohio federal judge on Tuesday dismissed a putative class action brought by KeyCorp 401(k) participants who said they paid inflated prices for company stock, ruling the plaintiffs never cited an instance where alleged misrepresentations by KeyCorp caused a sharp drop in its stock value.

U.S. District Judge Donald C. Nugent said the Employee Retirement Income Security Act suit fell short of the loss causation requirements laid out in the U.S. Supreme Court's 2005 decision in Dura Pharmaceuticals v. Broudo, which noted that stock prices can...
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