2nd Circuit Affirms Dismissal Of Stock-Drop Lawsuit Again Sallie Mae

2nd Circuit Affirms Dismissal Of Stock-Drop Lawsuit Again Sallie Mae

NEW YORK - Participants in an employee stock option plan sponsored by Sallie Mae failed to sufficiently allege that the plan fiduciaries knew or should have known that the company was in a "dire circumstance" and, therefore, the participants failed to demonstrate that the fiduciaries breached their fiduciary duties under the Employee Retirement Income Security Act to divest the plan of company stock, the Second Circuit U.S. Court of Appeals affirmed Dec. 26 in an unpublished order (Jim Slaymon, et al. v. SLM Corp., et al., No. 10-4061-cv, 2nd Cir.; 2012 U.S. App. LEXIS 26325).

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