Flagstar Bancorp Inc. agreed to pay $3 million to settle a stock-drop lawsuit brought by participants in its 401(k) plan, according to a July 29 order of the U.S. District Court for the Eastern District of Michigan granting preliminary approval of the settlement (Griffin v. Flagstar Bancorp, Inc., E.D. Mich., 2:10-cv-10610-PDB-MKM, 7/29/13).
The district court dismissed the participants’ claims of fiduciary breach and imprudent investing in 2011, but the U.S. Court of Appeals for the Sixth Circuit revived the lawsuit in 2012, finding that the participants had stated a viable claim for fiduciary breach.
In approving the ...
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