Lehman Officials Dodge Employee Stock Action In 2nd Circ.

Law360, New York (July 15, 2013, 1:28 PM EDT) -- The Second Circuit ruled Monday that managers of employee benefit plans have no duty to seek out nonpublic information about investments because doing so may lead to insider trading, dismissing a class action over a Lehman Brothers Holdings Inc. plan that held the firm’s stock before it went bankrupt.

A three-judge panel rejected claims that Lehman directors and members of an employee benefit plan committee wrongly continued to invest in Lehman stock before the company failed in September 2008. According to the panel, the defendants had...
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.