Gwaltney’s ALI-CLE Earns Bloomberg Coverage
Litigation Member Larry Gwaltney conducted an American Law Institute CLE entitled “Employer Stock in ERISA Plans: What Now after Dudenhoeffer?” on July 21. Bloomberg BNA covered the program, and quoted Gwaltney in their article, “Attorneys Make Predictions, Offer Advice, to ESOP Sponsors Following Dudenhoeffer.”
Gwaltney said that insulating fiduciary committees from the type of nonpublic information that could form the basis of a stock-drop lawsuit after Dudenhoeffer could reduce a company’s changes of having to defend stock-drop claims brought under the Employee Retirement Income Security Act.
“Between the ‘flurry’ of remands in pending stock-drop cases and the anticipated influx of newly filed cases, court watchers can expect district courts to begin issuing decisions applying Dudenhoeffer’s principles in the next six to 12 months, Gwaltney said.”
Bloomberg's "key takeaway" from the CLE was that ESOP sponsors should continually review plan's investment in company stock and consider insulating fiduciary committee from nonpublic information.
Gwaltney spoke alongside Lars Golumbic of Groom Law Group. The CLE was designed for attorneys, fiduciaries, plan sponsors, and other professionals who work with ESOPs, KSOPs, and profit-sharing plans containing employer stock.