Third Circuit Okays ERISA Dismissal
The Third Circuit today upheld dismissal of a complaint alleging that ERISA plan fiduciaries breached their duties of prudence and disclosure by allowing participants to continue investing in their employer's stock. The court concluded that the factual allegations didn't support the conclusion that the fiduciaries abused their discretion in keeping Avaya stock as an investment option. It also decided that warnings about the riskiness of putting all one's eggs in one basket defeated the non-disclosure claim. Edgar v. Avaya, Inc., No. 06-2770 (3d Cir. Sept. 26, 2007).
Barry Barnett
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