Plan Participants Fail To Show That Fiduciary Breach Caused Losses, Judge Finds

Plan Participants Fail To Show That Fiduciary Breach Caused Losses, Judge Finds

DURHAM, N.C. - Participants in R.J. Reynolds Tobacco Co.'s 401(k) plan are not entitled to recover for breach of fiduciary duty under the Employee Retirement Income Security Act based on the removal of Nabisco stock from the plan following a spin-off, even though the plan failed to undertake an appropriate investigation into the prudence of removing the stock from the plan, because the decision to divest the plan of the stock was "objectively prudent," a federal judge in North Carolina ruled Feb. 25 (Richard G. Tatum v. R.J. Reynolds Tobacco Company, et al., No. 1:02cv00373, M.D. N.C.; 2013 U.S. Dist. LEXIS 26045).

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