The 2nd Circ. Stance In Citigroup ERISA Litigation

Law360, New York (November 8, 2011, 2:15 PM EST) -- In a much-anticipated decision, the U.S. Court of Appeals for the Second Circuit joined five other circuits in ruling that employer stock in a 401(k) plan is subject to a presumption of prudence that a plaintiff alleging fiduciary breach can overcome only upon a showing that the employer was facing a "dire situation" that was objectively unforeseeable by the plan sponsor. In re Citigroup Employee Retirement Income Security Act Litigation, No. 09-3804, 2011 (2d Cir. Oct. 19, 2011).

The appellate court found the plaintiffs had not...
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