Law360 Quotes Mark Boyko on Supreme Court’s Decision to Review ESOP Case
Law360 quoted Mark Boyko in a June 4 article titled "Justices Set ESOP Stock-Drop Suits In Their Sights." The article discusses the impact of the upcoming US Supreme Court review and possible reversal of the Second Circuit’s opinion that IBM workers who alleged the overseers of their employee stock ownership plan let them invest in overvalued company stock while knowing that IBM’s microchip division was losing $700 million per year.
Boyko says it appears that if SCOTUS sides with the IBM retirement committee, the decision could be the “last nail in the coffin” for such claims against publicly traded ESOPs . The courts had used the Fifth Third Bancorp decision to “pin the pendulum in favor of fiduciaries.” If the Supreme Court rules in favor of the IBM workers, it could “bring the pendulum back into an alignment balancing the competing interests in prudent plan investments,” Boyko adds.
The full article can be read at Law360 (subscription required)