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Challenge to TEGNA Stock in Gannett 401(k) Revived on Appeal

Aug. 11, 2020, 4:31 PM

A participant in Gannett Co.'s 401(k) plan convinced the Fourth Circuit on Tuesday to revive his proposed class action claiming the plan lost millions of dollars because of an imprudent investment in the stock of former Gannett parent TEGNA Inc.

Jeffrey Quatrone can move forward with his claims of fiduciary breach under the Employee Retirement Income Security Act, the court ruled in an opinion by Judge James A. Wynn Jr. Quatrone adequately alleged it was imprudent for the plan to keep such a large holding—up to $269 million—in a single-stock fund, leading to millions in losses, Wynn said.

To survive ...