ERISA Stock Drop Suits & the 404(c) Safe Harbor Defense
Defending Stock Drop Cases Amid Differing Court Standards
Recording of a 90-minute premium CLE webinar with Q&A
This CLE webinar will provide counsel to ERISA plans with a thorough update on case law developments in stock drop litigation. The panel will review the scope of the 404(c) safe harbor defense and offer litigation strategies to defend stock drop suits.
Outline
- Defense of stock drop cases
- Moench presumption of prudence
- Scope of the presumption
- Rebutting the presumption
- Application of presumption at pleadings stage
- Misrepresentation claims and disclosure obligations
- DOL’s position in amicus briefs
- Directors and officers as fiduciaries
- Recent case rulings and settlements
- Moench presumption of prudence
- Section 404(c) safe harbor protection
- Scope of the protection
- Defense to stock drop litigation
- DOL’s narrow interpretation and amicus filing
- Design and operational requirements to qualify for the protection
Benefits
The panel will review these and other key questions:
- Under what circumstances does the Moench presumption apply at the pleadings stage?
- What is the DOL's rationale for rejecting or limiting the Moench presumption in stock drop cases?
- Does a plan fiduciary have a duty to override plan language that expressly provides for employer stock investments?
- How has the Section 404(c) safe harbor protection been used in the defense of stock drop claims?
- What are the design and operational requirements for a plan to qualify for 404(c)'s protection?
Faculty
Myron D. Rumeld
Partner
Proskauer
He supervises the bulk of the firm’s employee benefits plan litigation activities in the firm’s New York... | Read More
He supervises the bulk of the firm’s employee benefits plan litigation activities in the firm’s New York office and has handled a broad array of other labor and employment litigation matters. He has represented both single employer and multiemployer plans, plan fiduciaries, employer contributors to multiemployer plans, and professional advisors to plans.
CloseBrian T. Ortelere
Partner
Morgan Lewis
Mr. Ortelere is a Partner in the New York and Philadelphia offices, and is Co-Chair of the ERISA Litigation Practice at... | Read More
Mr. Ortelere is a Partner in the New York and Philadelphia offices, and is Co-Chair of the ERISA Litigation Practice at Morgan Lewis. His practice covers the full range of employee benefit defense litigation matters, including every variety of ERISA class action. He has particular expertise in defending class claims challenging the administration of defined benefit pension plans, 401(k) and 403(b) savings plans and ESOPs, and has abundant experience in representing fiduciaries and plan service providers in governmental investigations related to benefit plans. Along with the ERISA Litigation Practice he co-chairs, Mr. Ortelere is ranked in the top three ERISA litigators nationwide by Chambers and Partners.
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