401(k) Suits Follow Securities Fraud Litigation
With Enron Corporation being among the most recent situations, and the one receiving the most media notoriety, a new genre of litigation has arisen within the past two years, involving 401 (k) plans.
The suits arise when a companys stock price falters upon the alleged disclosure of previously nondisclosed or misrepresented adverse news, and that companys 401 (k) savings plan is overly concentrated in the companys own stock. Such overconcentrations may occur because the company elected to make its matching contribution to its employees investments of their own funds with company stock.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
