Fifth Third — And Why Stock-Drop Suits Will Live Anyway

Law360, New York ( March 31, 2014, 1:41 PM EDT) -- Employee Retirement Income Security Act stock-drop cases typically involve claimed breaches of two of the four enumerated fiduciary duties in Section 404(a) of the ERISA: prudence and loyalty. A breach of the duty of prudence claim is often premised upon imprudent selection or retention of employer company securities as an investment option in ERISA plans. Claims for breach of the duty of loyalty are generally premised on alleged misrepresentations or omissions about those securities — a judicial expansion of more common notions of the duty of loyalty....

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