5th Circuit Discusses Co-Fiduciary Liability, Reliance On Expert In ESOP Case

Mealey's (May 10, 2016, 10:21 AM EDT) -- NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on May 3 affirmed a $6.5 million judgment in favor of the secretary of the U.S. Department of Labor and participants in an employee stock ownership plan (ESOP) and its participants, finding that the plan fiduciaries breached their duties of loyalty and engaged in prohibited transactions when they purchased company stock for the ESOP but commenting that the Fifth Circuit “has never recognized [a failure-to-monitor] theory of ERISA fiduciary liability” (Thomas E. Perez, Secretary, Department of...
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