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Sixth Circuit Continues to March to Its Own Drummer in 'Stock Drop' Case While Second Circuit Marches in Different Direction
Seyfarth Shaw Link to more items from this source
Sept. 25, 2012

"[T]he Sixth Circuit [recently] reiterated that 'the proper question' was whether the complaint 'pleads facts to plausibly allege that a fiduciary has breached its duty to the plan and a causal connection between that breach and the harm suffered by the plan -- that an adequate investigation would have revealed to a reasonable fiduciary that the investment in [company stock] was improvident.' ... By contrast, on September 4, 2012, the Second Circuit ... found that, where the plan terms 'require[e] or strongly favor[]' some investment in employer stock, 'plaintiffs must plausibly plead that [the employer] faced a "dire situation,"' in order to preclude dismissal." [Dudenhoefer v. Fifth Third Bancorp et al., No. 11-3012 (6th Cir. Sept. 5, 2012); In re Glaxosmithkline ERISA Litigation, No. 11-2289 (2d Cir. 2012)]  MORE >>

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