The Second Circuit sent shock waves through the community of ERISA stock-drop practitioners late last year in Jander v. Retirement Plans Committee of IBM1 by finding plan participants had plausibly alleged a breach of duty of prudence claim against plan fiduciaries.2 Jander is the only appellate court decision to have found such a claim plausibly pled since the Supreme Court’s decisions in Fifth Third Bancorp v. Dudenhoeffer3 and Amgen Inc. v. Harris4 significantly raised the pleading bar for plaintiffs. It thus raised the prospect that the Second Circuit was signaling the liberalization of pleading standards in stock-drop cases (at least in the Second Circuit), despite the long line of cases finding stock-drop plaintiffs had failed to meet their pleading burden under Dudenhoeffer.
Home > Federal Law Articles > Class Actions > General (Class Actions) > Does Jander Signal the Liberalization of Pleading Standards in Stock-Drop Cases? Signs Point to No