ERISA Stock Drop Suit Defense Tactics

Navigating Unsettled Court Treatment of the Moench Presumption, 404(c) Safe Harbor Defense, and Alternative Investment Theory

Recording of a 90-minute CLE webinar/teleconference with Q&A


Conducted on Thursday, August 2, 2012
Recorded event now available


This CLE webinar examine the current state of ERISA plan stock drop litigation, including courts' various approaches to the Moench presumption of prudence, the 404(c) safe harbor defense, and judicial reactions to plaintiff efforts to prove loss through comparisons to alternative investments.

Description

The recession and stock market declines triggered a wave of stock drop lawsuits against fiduciaries of ERISA plans based on losses in portfolio values. Though courts have generally decided in favor of defending companies, the degree of deference granted by courts remains unsettled.

In May 2012, the Eleventh Circuit joined other circuits that have adopted the Moench presumption favoring plan fiduciaries of employee stock ownership plans. Whether courts will apply the presumption at the pleading stage is not consistent and impacts whether a motion to dismiss will be accepted.

Counsel must stay on top of current stock drop litigation trends, particularly cases where litigation gets past the pleading stage. The Section 404(c) safe harbor can provide a defense, but plaintiffs have also attempted to prove loss and causation by comparing plan performance to alternative investments.

Listen as prominent ERISA litigators provide a guide to recent trends among courts, including various degrees of deference provided to the Moench presumption, the use of the 404(c) safe harbor defense, and receptiveness of courts to plaintiffs comparing ERISA plan performance to that of alternative investments.

Outline

  1. Defense of stock drop actions
    1. The Moench presumption
      1. Scope of the presumption
      2. Rebutting the presumption
    2. Application of the Moench presumption at pleadings
    3. Expected developments
  2. 404(c) Safe harbor defense
    1. Scope of the defense
    2. DOL interpretation
    3. Design and operational requirements
  3. Plaintiff claims: alternative-investment theory

Benefits

The panel will review these and other key questions:

  • How extensive is the protection provided by the Moench presumption to ERISA plan fiduciaries?
  • What are the differing treatments by federal circuit courts on applying the Moench presumption at the pleadings stage?
  • What are the design and operational requirements for a plan to qualify for protection under ERISA Section 404(c)?
  • What is the status of alternative-investment theory as a foundation for ERISA claims?

Faculty

Azeez Hayne, Partner
Morgan Lewis & Bockius, Philadelphia

His practice focuses primarily on defending ERISA and systemic discrimination class actions. This practice includes representing ERISA plan sponsors and fiduciaries in litigating class and single plaintiff cases. He has litigated, including through trial, ERISA class action breach of fiduciary duty, benefits, and other statutory claims.

Russell L. Hirschhorn, Senior Counsel
Proskauer Rose, New York

His practice focuses on complex ERISA litigation and he advises employers, fiduciaries and trustees on ERISA benefit and fiduciary issues. He represents employers, plan sponsors, plans, trustees, directed trustees and fiduciaries in all phases of litigation, arbitration and mediation involving employee benefits.

Ordering

Online CLE - Audio Recording

Includes streaming audio of full program plus handouts (available 24 hours after live program).

CLE: Pre-approved for participatory or non-traditional/alternate format credit in: CA, HI*, NY*, WV*. Pre-approved for self-study credit in: AK, AZ, MO, MT, TX*, VT, WA.
Upon request, also available in: CO, CT*, FL, GA, ID, KY, LA*, ME, NC, ND, NE, NH, NM, NV, OR*, SC, TN, UT, WI, WY. If you are applying for credit in one of these states, make sure to select those states when placing your order.
(*Indicates that Strafford must report attendance.)

Online CLE Audio $297.00
Available 24 hours after the live event

How does this work?


Recorded Event

Includes full event recording plus handouts (available after live seminar).

CLE: Pre-approved for self-study credit in: AK, AZ, CA, CT, HI, MO, MT, NY, TX*, VT, WA, WV. Upon request, self-study credit is also available in: CO, FL, GA, ID*, KY, ME, ND, NE, NH, NM, NV, OR, UT, WI, WY. If you are applying for self-study credit in one of these states, contact Strafford CLE at 1-800-926-7926 ext. 35 or CLE@straffordpub.com. (*Indicates that Strafford needs to process the CLE — see below to purchase this option.)

Webinar Download (Slide Presentation with Audio) $297.00
Available three business days after the live event

How does this work?

DVD (Slide Presentation with Audio) $297.00 plus $9.45 S&H
Available ten business days after the live event

MP3 Download (Audio with Slide PDFs) $297.00
Available 24 hours after the live event

How does this work?

CD (Audio with Slide PDFs) $297.00 plus $9.45 S&H
Available ten business days after the live event

Webinar/Teleconference

Strafford webinars/teleconferences offer several options for participation: online viewing of speaker-controlled PowerPoint presentations with audio via computer speakers or via phone; or audio only via telephone (download speaker handouts prior to the program).  Please note that our webinars do not feature videos of the presenters.

Program Materials

Requires Adobe Reader 8 or later. Download Acrobat FREE.

Program Materials

Requires Adobe Reader 8 or later. Download Acrobat FREE.

or call 1-800-926-7926

CLE Credit

Strafford's live seminars qualify for CLE in every state that accredits webinars. They offer you a high quality, cost effective, and convenient CLE option, with no lost travel time or expenses.

More Details >

or call 1-800-926-7926

Customer Reviews

I appreciated the speakers' extensive knowledge on the subject.

Amanda Gerstnecker

Meyer, Unkovic & Scott

I appreciated that the seminar’s comprehensive coverage was targeted to those not already expert in this area of law.

Patricia Chapman

Gleaves Swearingen

The seminar reinforced information and explained issues in a clear manner without being either too elementary or too technical.

Mary Bowden

SC&H Group

Great overall summary of ERISA issues.

Shannon Awsumb

Anthony Ostlund Baer & Louwagie

The seminar was understandable, fluid and thorough for the topics covered.

Susan L. Dolin, Esq.

Susan L. Dolin

or call 1-800-926-7926

Employment & ERISA Advisory Board

Barbara E. Hoey

Partner

Littler Mendelson

Jeffrey Hollingsworth

Partner

Perkins Coie

Marcia Nelson Jackson

Partner

Wick Phillips

Paul J. Kennedy

Shareholder

Littler Mendelson

Nancy Morrison O'Connor

Partner

Bracewell & Giuliani

Laura Foote Reiff

Shareholder

Greenberg Traurig

Eugene Scalia

Partner

Gibson Dunn & Crutcher

Teresa R. Tracy

Partner

Gladstone Michel Weisberg Willner & Sloane

Todd D. Wozniak

Shareholder

Greenberg Traurig

or call 1-800-926-7926

Our Guarantee

Strafford webinars and teleconferences are backed by our 100% Unconditional Money-Back Guarantee: if you are not satisfied with any of our products, simply let us know and get a full refund. For more information regarding complaints and refunds, please contact us at 1-800-926-7926 ext 10.