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
- Defense of stock drop actions
- The Moench presumption
- Scope of the presumption
- Rebutting the presumption
- Application of the Moench presumption at pleadings
- Expected developments
- The Moench presumption
- 404(c) Safe harbor defense
- Scope of the defense
- DOL interpretation
- Design and operational requirements
- 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:
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Online CLE Audio $297.00
Available 24 hours after the live event
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.)
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Available three business days after the live event
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plus $9.45 S&H
Available ten business days after the live event
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Available 24 hours after the live event
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Available ten business days after the live event
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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
Employment & ERISA Advisory Board
Partner
Littler Mendelson
Partner
Perkins Coie
Partner
Wick Phillips
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Littler Mendelson
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Bracewell & Giuliani
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Greenberg Traurig
Partner
Gibson Dunn & Crutcher
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Gladstone Michel Weisberg Willner & Sloane
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Greenberg Traurig
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