Mealey's Banking & Finance - Fiduciary Duty Claims Against Morgan Stanley Fail, 2nd Circuit Rules

Mealey's Banking & Finance - Fiduciary Duty Claims Against Morgan Stanley Fail, 2nd Circuit Rules

NEW YORK - Morgan Stanley's decision to make company contributions to defined contribution plans with company stock after the fund was already active is not a fiduciary act, the Second Circuit U.S. Court of Appeals ruled May 29 in affirming the dismissal of participants' stock-drop claims under the Employee Retirement Income Security Act (G. Kenneth Coulter, et al. v. Morgan Stanley & Co. Incorporated, et al., Nos. 13-2504-cv, 13-2509, 2nd Cir.; 2014 U.S. App. LEXIS 10027).

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