Daily Labor Report®

SunEdison Wins ERISA Stock Suit Days After SCOTUS Takes Issue

June 7, 2019, 4:03 PM

SunEdison Inc. executives defeated a class lawsuit by employees who allegedly lost money by investing their retirement savings in the company’s stock even though bankruptcy loomed.

The SunEdison employees failed to overcome the U.S. Supreme Court’s high pleading standard for cases challenging stock drops under the Employee Retirement Income Security Act, the Second Circuit held June 7.

The Second Circuit specifically distinguished the case against SunEdison executives from a similar suit involving International Business Machines Corp. The Second Circuit issued a surprise ruling last year reviving an ERISA challenge to IBM’s stock price.

That decision, which appeared to break from...

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