Participants in two of RadioShack's retirement plans have filed a class-action in federal court alleging the company breached its fiduciary duty by continuing to offer company stock as an investment option, even after its poor performance made doing so imprudent.
The same court in 2008 dismissed part of another claim alleging Radio Shack impudently offered its own stock. In the earlier case, plaintiffs claimed the stock suffered an 8 percent drop after a $62 million company write-down related to obsolete inventory.
That claim was thrown out on the grounds that the company's "presumption of prudence" protected the decision to maintain company stock as an investment option.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
