Benefits & Executive Compensation News

SunEdison 401(k) Stock Challenge Dies in Eighth Circuit

June 4, 2019, 3:21 PM

A former employee of SunEdison Semiconductor LLC couldn’t convince the Eighth Circuit to revive his lawsuit claiming he lost money in his 401(k) account by investing in SunEdison stock.

Alexander Usenko’s lawsuit is based on publicly available information about SunEdison’s financial struggles and accompanying drops in stock price, the Eighth Circuit said. This isn’t enough to make a fiduciary breach claim under the Employee Retirement Income Security Act, the court said, citing the U.S. Supreme Court’s 2014 decision in Fifth Third Bancorp v. Dudenhoeffer.

The June 4 ruling comes one day after the Supreme Court announced it would revisit...

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