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Case: Retirement Plans/Fiduciary Duties (W.D. Va.)

June 29, 2020, 1:15 PM

A federal district court in Virginia denied Virginia Community Bankshares Inc.'s motion to dismiss a putative employee class action alleging fraudulent retirement plan valuations in violation of ERISA. The employee contended that the holding company and VCB were facing serious problems at the time of the stock valuation, including defaults or anticipated defaults on one or more large loans that were highly unlikely to be repaid, which would negatively impact the value of holding company stock. The employee sufficiently alleged that the loans were purposefully not disclosed, and that VCB knew or should have known that the loans might result...

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