Employer Stock Litigation

By: Ian Morrison and Abigail Cahak

The first (or second) question to ask in any ERISA breach of fiduciary duty case is whether the acts in question are even fiduciary acts.

On appeal in an ERISA “stock drop” case, the Second Circuit focused on that basic question, resulting in a clean win for the defendants.

By: Ward Kallstrom and Michelle Scannell

The Ninth Circuit recently grappled with whether the presumption of prudence, which normally protects fiduciaries in stock drop class actions, applies where the plan permits, but doesn’t require or encourage, the fiduciaries to offer employer stock as an investment option.  In Harris v. Amgen, 55 EBC 2093,  the court

By: Ian Morrison, Sam Schwartz-Fenwick and Chris Busey

Any trial lawyer knows the value of a good analogy.

In a recent damages ruling in a complex ESOP case, the Western District of Wisconsin composed a musical metaphor to explain its philosophy on ERISA damages. 

InChesemore v. Alliance Holdings, Inc., No. 3:09-cv-00413 (W.D. Wis.

By: Amanda Sonneborn and Chris Busey,           

In Metyk v. KeyCorp, No. 10-CV-2112 (N.D. Ohio Jan. 29, 2013),Judge Donald C. Nugent of the Northern District of Ohio granted Keycorp’s motion to dismiss in a sister case to  Taylor v. KeyCorp, Nos. 10-4163, -4198, -4199, (6th Cir. May 25, 2012), which was previously covered

By: Mark Casciari and Ada Dolph,

The Court of Appeals for the Sixth Circuit ruled in Pfeil v. State Street Bank & Trust Co., 671 F.3d 585, 591 (6th Cir. 2012) that the presumption that a fiduciary acted reasonably in retaining company stock cannot be applied at the pleading stage of litigation.  Pfiel

By: Ronald Kramer , Megan Troy and Sam Schwartz-Fenwick

On Friday, in Taylor v. KeyCorp, Nos. 10-4163, -4198, -4199, (6th Cir. May 25, 2012), the Sixth Circuit affirmed a district court’s dismissal in an ERISA stock-drop case, holding the remaining proposed named class plaintiff lacked standing because she could not establish an “injury in

By: Ian Morrison, Meg Troy and Sam Schwartz-Fenwick

On May 8, 2012, the Eleventh and Second Circuits affirmed two district court dismissals of “stock drop” cases at the pleadings stage, joining the long line of recent decisions that demonstrate skepticism towards stock drop claims.  We have reported on some of those decisions here and