On October 19th, the U.S. Court of Appeals for the Second Circuit joined the Third, Fifth, Sixth and Ninth Circuits in holding that a presumption of compliance with the Employee Retirement Income Security Act of 1974 ("ERISA") exists when an employee stock option plan fiduciary invests plan assets in the employer's stock. To overcome that presumption, a plaintiff must establish that investing in the employer's stock was an abuse of discretion. Here, ERISA participants alleged that defendants violated ERISA by offering company stock as a plan choice when defendants knew the stock had become an imprudent investment. Applying the abuse of discretion standard, the Second Circuit found that no abuse of discretion occurred. Additionally, the defendants did not owe a duty to disclose nonpublic information regarding the expected performance of the stock, and the complaint insufficiently alleged that the defendants knowingly made misstatements. Gray v. Citigroup, Inc. See also companion opinion, Gearren v. McGraw-Hill Cos., Inc.