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Supreme Court Rejects the Moench Presumption
The Lowenbaum Partnership and FRA PlanTools Link to more items from this source
June 25, 2014
"The Supreme Court rejected any presumption, effectively disagreeing with every circuit court to decide the issue ... The Supreme Court also addressed Fifth Third's concerns about being between a rock and a hard place in that they can be sued if the price goes down and they keep the stock in the plan or can be sued if the stock price them goes up and they haven't put it back in. The Supreme Court seemed to sympathize but still held that the presumption of prudence was not the solution ... [T]he Supreme Court made clear that the securities laws trump ERISA law.... [T]he Court has now required the lower courts to consider whether a claim to stop purchasing or a claim to inform the public would hurt the participants more than doing nothing." [Fifth Third Bancorp v. Dudenhoeffer, No. 12-751 (S. Ct. June 25, 2014)]

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