Simpson Thacher Obtains Second Circuit Affirmance of Dismissal of ERISA Putative Class Action
07.16.13
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On July 15, 2013, the Second Circuit affirmed the Southern District’s dismissal of complaints brought on behalf of participants in an employee stock ownership plan sponsored by Lehman. The case, which arose out of Lehman’s bankruptcy filing, alleged that defendants had breached their fiduciary duties under ERISA by failing to divest the plan of Lehman stock. In affirming, the Second Circuit held that plaintiffs did not allege facts sufficient to show that defendants knew or should have known that Lehman was in a dire situation at some time during the class period.
Simpson Thacher represented the plan benefit committee in this action. The Simpson Thacher team consists of Jonathan Youngwood, Janet Gochman, and Hiral Mehta.