Media Quote Paul Ondrasik on SCOTUS Fifth Third Bancorp Decision

July 7, 2014

Employee Benefit News and Law360 quoted Steptoe partner Paul Ondrasik in articles regarding the US Supreme Court’s unanimous decision in Fifth Third Bancorp v. Dudenhoeffer.  On June 25, the high court vacated and remanded the opinion of the 6th Circuit, ruling that fiduciaries of an employee stock ownership plan are not entitled to any presumption of prudence in connection with the plan's employer stock holdings, but rather are subject to the same general prudence standard set out in ERISA Sec. 404(a)(1) except for the duty of diversification.

Mr. Ondrasik tells Employee Benefit News:  “As the (Supreme Court) recognized, the lower courts can and should continue to ‘divide the plausible sheep from the meritless goats’ on a motion to dismiss.  And the opinion gives them the tools to do so by rejection as ‘implausible’ claims based on little more than the fact of a stock drop and allegations of insider information.”

The full articles can be read in Employee Benefit News and Law360 (subscription required).