Newsflash: Be Careful What You Wish For – Dudenhoeffer May Do “More Harm Than Good” For ERISA “Stock Drop” Plaintiffs

January 29, 2016

In its June 2014 decision in Dudenhoeffer v. Fifth Third Bank, the U.S. Supreme Court unanimously declined to recognize a “presumption of prudence” that had favored retirement-plan fiduciaries faced with allegations of breaches of fiduciary duty under the Employee Retirement Income Security Act of 1974 (“ERISA”). The so-called Moench presumption, named for the 1995 case that introduced it, Moench v. Robertson, had, prior to Dudenhoeffer, helped fiduciaries obtain dismissal of numerous allegations of breaches of fiduciary duty with respect to the acquisition and holding of employer stock by a retirement plan.

Read "Newsflash: Be Careful What You Wish For – Dudenhoeffer May Do “More Harm Than Good” For ERISA “Stock Drop” Plaintiffs."