A decision by the Supreme Court to remand a long-standing “stock-drop” case brought under the Employee Retirement Income Security Act underscores the significance of the high court’s unanimous 2014 decision in Fifth Third Bancorp v. Dudenhoeffer.
In its landmark Fifth Third ruling, the Supreme Court raised the bar for defined contribution fiduciaries by finding they no longer enjoyed a “presumption of prudence” in offering participants company stock in retirement plans.
In the wake of that decision, ERISA experts weighed in, noting that the ruling also raised the bar for plaintiffs claims in stock drop cases: yes, plan fiduciaries could no longer hide behind a presumption of prudence, but plaintiffs would also have a higher bar in bringing stock-drop claims.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
