ERISA Stock-Drop Cases: Evolution And Future

Law360, New York (December 11, 2008, 12:00 AM EST) -- The tech bubble/telecom burst and energy trading/accounting scandals of the early 2000s gave birth to the first wave of ERISA “stock-drop” cases.

These cases arise when company stock is offered as an investment option in the company-sponsored 401(k) or ESOP, and the company stock suffers a dramatic decline, resulting in losses to plan participants who invested in that company stock.

Employees-plan participants then allege that the plan fiduciaries (often, officers and directors) breached their duties under ERISA by, among other things,

(1) offering company stock as...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.