U.S. Supreme Court Rejects Presumption of Prudence for Benefit Plan Investments in Employer Stock
Fred R. Green,
Edward B. Stevenson
In Fifth Third Bancorp v. Dudenhoeffer
, a unanimous Supreme Court rejected the presumption of prudence doctrine (also known as the Moench doctrine), which is applicable to claims against fiduciaries of benefit plans that invest in the sponsoring employer’s stock. The elimination of the presumption of prudence is expected to make it easier for plaintiffs to pursue claims for breach of fiduciary duty when there is a significant drop in the value of employer stock held in an employee benefit plan.
The Impact of Pending and Existing Employment Legislation on Employment Lawyers and Clients
November 1, 2010
The Impact of Recent Regulatory Developments in Employment Law, published by Aspatore Books
Employment litigation specialist Carol Goodman authors a book chapter on what laws -- existing and pending -- affect employment attorneys and their clients, and in what way. The chapter is part of a larger book covering regulatory changes in employment law.
Repricing Underwater Stock Options
May 27, 2009
Stephen E. Fox
SEC Trends & Developments, the newsletter published by the accounting firm Eisner LLP.
Public companies with out-of-the-money stock options should consider repricing those underwater options, Stephen Fox writes in the accounting firm's newsletter in a new section called From The Bar. Repricing options so they are in the money is one way of compensating employees and aligning their interests with those of their employers.