Court Says Fraud or Concealment Exception Doesn’t Apply in Prolonged Stock Drop Case

Former Waste Management Holdings Inc. employees failed to convince the U.S. District Court for the District of Columbia Oct. 3 that the fraud or concealment exception to the Employee Retirement Income Security Act’s statute of limitations for fiduciary breaches applies to certain claims in their long-running “stock-drop” lawsuit (Harris v. Koenig, D.D.C., 1:02-cv-00618-GK-JMF, 10/3/11).

In its latest decision in a nine-year-old stock-drop lawsuit, the district court addressed the employees’ argument that two individual retirement plan fiduciaries engaged in acts of fraudulent concealment, and thus ERISA’s six-year statute of limitations applied to the employees’ fiduciary breach claims.

The ...