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Indiana District Court Says ESOP Fiduciaries Have No Duty to Investigate False Sale Allegations
Proskauer's ERISA Practice Center Link to more items from this source
May 1, 2014
"[T]he court cited the Seventh Circuit in finding that a 'fiduciary's duty to investigate "only arises when there is some reason to suspect that investing in company stock may be imprudent -- that is, there must be something akin to a 'red flag' of misconduct."' The court, however, allowed the action to proceed against two members of the board of directors who knew of but failed to disclose potentially material information regarding the company's stock value." [Malcolm v. Trilithic, Inc., 2014 WL 1324082, No. 1:13-cv-00073 (S.D. Ind. Mar. 31, 2014)]

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