Legal News

ERISA stock drop case dismissed

By Richard Binder

Earlier this week, a ERISA suit against Computer Sciences Corporation was dismissed on summary judgment by Los Angeles federal district court judge James Otero. The plaintiffs had alleged that the company and its retirement plan committee had breached their fiduciary duties to participants of its 401(k) plan by continuing to to invest retirement plan assets in the company's stock, in the face of stock option backdating allegations.

The court found that the plaintiffs had presented no evidence that the defendants had violated their fiduciary duties by failing to meet the "prudent man" standard. Judge Otero also found no evidence that CSC stock underperformed compared to comparable investments over the class period, which ran from December 1998 to January 2008.

Defendants were represented by Dean Kitchens and Paul Blankenstein at Gibson, Dunn & Crutcher, and Charles Jackson, D. Ward Kallstrom, Nicole Diller, Deborah Davidson, and Thomas Hurka at Morgan, Lewis & Bockius.

Full story at Am Law Litigation Daily.

Full post as published by Legal Pad | LA on July 15, 2009 (boomark / email).