High Court Denies Petition Seeking Review Of Causation In Stock-Drop Case

High Court Denies Petition Seeking Review Of Causation In Stock-Drop Case

WASHINGTON, D.C. - The U.S. Supreme Court on Dec. 3 declined to review the Sixth Circuit U.S. Court of Appeals ruling that participants in General Motors Corp.'s 401(k) plans - who alleged that State Street Bank and Trust Co., an independent fiduciary and investment manager for the plans, breached its fiduciary duties under the Employee Retirement Income Security Act (ERISA), 29 U.S.C.S. § 1001 et seq. by waiting until March 31, 2009, to begin divesting the plans of their holdings in company stock - sufficiently alleged causation under ERISA Section 409(a) and that State Street did not meet the requirements for the safe harbor of ERISA Section 404(c) (State Street Bank and Trust Company v. Raymond M. Pfeil, et al.,  No. 12-256, U.S. Sup.).

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