The U.S. District Court for the Southern District of New York has once again dismissed a stock-drop claim against fiduciaries of JP Morgan's 401(k) plan.
The claim had previously been dismissed, but the 2nd Circuit Court of Appeals remanded the case for reconsideration, in light of the Supreme Court decision in Fifth Third Bancorp v. Dudenhoeffer, which famously insisted a higher bar of fiduciary standard for sponsors of Employee Stock Ownership Program.
But even after the high court said plan fiduciaries no longer enjoy the presumption of prudence when offering company stock to plan participants, the claim against JP Morgan still did not pass muster for U.S. District Judge George Daniels.
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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.
