Richard Siegel, a senior associate in the firm’s ERISA Litigation Group, was featured in the Bloomberg BNA article, “High Court Kills Presumption of Prudence, Gives Hope to ESOP Fiduciaries.”
The article examines the Supreme Court’s unanimous rejection of “presumption of prudence” for ESOP fiduciaries.
Richard Siegel noted that the ruling doesn’t make it significantly easier for participants bringing stock-drop claims.
“While the Supreme Court's decision today does away with the presumption of prudence, fortunately, the Court did not end its opinion there,” Siegel said. He added that the Court provided “helpful guidance” for lower courts weighing stock-drop claims.
“While it will take some time to see how the courts implement this ruling, it appears that the Supreme Court has significantly restricted the types of allegations that plaintiffs may raise in order to state a plausible claim,” Siegel said. “So long as the Supreme Court's instructions are followed, it will likely remain quite difficult for most stock-drop cases to survive a motion to dismiss, even in the absence of a presumption.”