Jenner & Block

“Everything Old is New Again: Stock Drop Lawsuits on the Rise,” Employee Relations Law Journal

In this article, Jenner & Block Chair Craig C. Martin and Partner Amanda S. Amert examine a trend in employer stock fund cases, or “stock drop” cases.  The authors analyze US Supreme Court decisions in Fifth Third Bancorp v. Dudenhoeffer and Harris v. Amgen, Inc. and how they have affected decisions in lower courts, namely the Second Circuit’s decision in Jander v. Retirement Plans Committee of IBM, as well as two separate class action lawsuits filed against Johnson & Johnson in New Jersey District Court for alleged breaches of fiduciary duties under ERISA.  The authors advise plan fiduciaries to, “Be prepared for a potential uptick in employer stock class actions among plaintiffs while the ramifications of the Jander decision are being sorted out.”