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What the Supreme Court's Dudenhoeffer Decision Means for ESOPs
National Center for Employee Ownership [NCEO] Link to more items from this source
June 25, 2014
"The ruling does not mean that company stock can no longer be held in these plans, but it is likely to alter the landscape for ESOP companies and trustees... Dudenhoeffer distinguished between relying on inside information to sell company stock (which it classified as illegal insider trading and thus not required by the duty of prudence) and refraining from buying more company stock (which might be a fiduciary violation).... Given the very strong bipartisan support for ESOPs, it is possible that Congress will act to clarify the law to protect ESOPs, at least for closely held companies." [Fifth Third Bancorp v. Dudenhoeffer, No. 12-751 (U.S. June 25, 2014)]

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