June 4, 2019 / 10:11 PM / 15 days ago

Plan's investment in flailing SunEdison stock did not violate ERISA – 8th Circ

A U.S. appeals court on Tuesday tossed out claims that a former SunEdison Inc subsidiary violated federal law by failing to dump the renewable energy company’s stock from an employee retirement plan before it declared bankruptcy.

A unanimous three-judge panel of the 8th U.S. Circuit Court of Appeals said that under the federal Employee Retirement Income Security Act of 1974 (ERISA), plan fiduciaries are required to act “with prudence, not prescience,” and SunEdison Semiconductor LLC (Semi) had no way of knowing that its former parent company’s stock would tank when it set up the retirement plan.

To read the full story on WestlawNext Practitioner Insights, click here: bit.ly/2XmGT5S

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