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401(k) Plans With Stock of Former Parent Denied SCOTUS Look

Dec. 13, 2021, 2:34 PM

The U.S. Supreme Court followed the advice of the U.S. solicitor general and said Monday it won’t consider 401(k) plans that hold stock of a former parent company following a corporate spin-off, denying a petition from Gannett Co.

Gannett asked the court to undo a 2020 decision by the U.S. Court of Appeals for the Fourth Circuit. It revived a proposed class action challenging Gannett’s decision to allow workers to invest their 401(k) accounts in the stock of former parent company Tegna Inc.

In a 2-1 split opinion, the Fourth Circuit held that plan participants adequately alleged it was imprudent ...