Company Stock Issues
When the value of company stock held in an ERISA plan declines, it is not unusual for plan participants to file suit alleging that it was imprudent for plan fiduciaries to allow plan participants to invest in the company’s stock. Our expert work in ERISA “stock drop” cases has included analyses related to liability, damages, and class certification issues.
Our work in these matters includes:
- Assessing the prudence of company stock as an investment by observing the decisions of unrelated, sophisticated market participants, such as institutional investors and financial analysts
- Investigating whether the presence of company stock in a plan harmed plan participants
- Evaluating whether plan participants were harmed by alleged misrepresentations and omissions in the sponsor company’s disclosures
- Analyzing data on participants’ transactions to evaluate the issues of commonality and typicality among members of the proposed class