Court rules on ERISA class action law suit

With the spotlight on ERISA class action law suits, I found this interesting and timely post on Barry Barnett’s Blawgletter. He points us to last Thursday’s decision by the U.S. Court of Appeals for the Fifth Circuit (U.S. District Courts in Louisiana and Texas) on a recent ERISA class action suit. In this case involving employer stock, plan participants claimed that the fiduciaries of the EDS 401(k) plan improperly required them to purchase Company stock. Even after the stock became an "imprudent investment". The Court vacated a lower court’s decision certifiying the case as a class action. Mr. Barnett’s post includes a link to the Court’s decision. I’ll leave it to the attorneys out there to comment on what implications this case could have on the current class action law suit line-up.