In Fifth Third Bancorp v. Dudenhoeffer, 573 U.S. __, 134 S. Ct. 2459 (2014), the United States Supreme Court specified rigorous pleading requirements for so-called stock-drop suits brought against employee stock-ownership plan fiduciaries under the Employee Retirement Income Security Act of 1974 (FRIBA). In a recent per curiam opinion, the Court confirmed in no uncertain terms that it expects lower courts to fastidiously apply the Dudenhoeffer pleading standards. Amgen Inc. v. Harris, 577 U.S. __, No. 15-278 (Jan. 25, 2016). The Court's brief opinion is noteworthy for stock-drop defendants, who should still have a meaningful opportunity to challenge questionable fiduciary-breach claims at the pleading stage.
Originally published by Washington Legal Foundation.