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Fifth Circuit Dismisses Fiduciary Breach Claims Under Moench/Kirschbaum Standard

The U.S. Court of Appeals for the Fifth Circuit upheld the dismissal of the plaintiff?ÇÖs complaint alleging that the defendants breached their fiduciary duties by, among other things, permitting the plan to continue offering employer stock as an investment option. The Court explained that the ?Ç£Moench presumption of prudence?Ç¥ adopted in Kirschbaum v. Reliant Energy Inc., 526 F.3d 243, 254 (5th Cir. 2008) applied at the motion to dismiss stage and that the plaintiff failed to allege facts showing the fiduciaries were aware that the employer?ÇÖs viability was threatened – the standard to overcome the presumption of prudence. Kopp v. Klein, No. 12-10416 (5th Cir. July 9, 2013).

July 2013
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