Published By Stanley D. Baum, New York ERISA attorney. Handling matters in ERISA, employee benefits, executive compensation, disability, and employment law for employers, individuals and unions.
ERISA Lawyer BlogERISA-Fifth Circuit Upholds Dismissal of Class Action Against Fiduciaries of Radio Shack Corporation’s 401(k) Plan
In Singh v. RadioShack Corp., 16-11587 (5th Cir. 2018), the Plaintiffs, Manoj P. Singh, Jeffrey Snyder, and William A. Gerhart, represent a putative class of those who participated in RadioShack Corporation’s 401(k) Plan (the “Plan”) and who held RadioShack stock in their 401(k) accounts after November 30, 2011. They appeal the dismissal by the district court of their claims that Defendants—members of the RadioShack board of directors and plan administrative committee—breached their fiduciary duties under ERISA by allowing plan participants to invest in RadioShack stock despite the company’s descent into bankruptcy.
The Fifth Circuit Court of Appeals (the “Court”) affirmed the district court’s dismissal. The Court concluded that the Plaintiff’s complaint did not plausibly state any fiduciary claims with respect to the Plan.