Mealey's Banking & Finance - 11th Circuit: Presumption Of Prudence Applies In Stock-Drop Case

ATLANTA - Participants in an employee stock ownership plan (ESOP) sponsored by Delta Air Lines Inc. failed to overcome the presumption that the plan fiduciaries acted prudently by continuing to invest in company stock during the period that the stock declined in value by 92 percent, the 11th Circuit U.S. Court of Appeals ruled April 17 in an unpublished opinion affirming the dismissal of the participants' breach of fiduciary duty claims under the Employee Retirement Income Security Act (Dennis Smith, et al. v. Delta Air Lines Inc., et al., No. 13-15155, 11th Cir.; 2014 U.S. App. LEXIS 7209).

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