5th Circuit: Presumption Of Prudence Applies To Motion To Dismiss In ESOP Case

NEW ORLEANS - Participants in an employee stock ownership plan (ESOP) who alleged that the plan's fiduciaries breached their duties under the Employee Retirement Income Security Act by continuing to offer and hold company stock as an investment option failed to overcome the presumption of prudence, the Fifth Circuit U.S. Court of Appeals affirmed July 9 in granting the fiduciaries' motion to dismiss (Randy Kopp v. Scott W. Klein, et al., No. 12-10416, 5th Cir.; 2013 U.S. App. LEXIS).

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