Plaintiffs in Seventh Circuit Fail to Meet Dudenhoeffer Pleading Standards in Stock Drop Case | Practical Law
In Burke v. Boeing Company, the US Court of Appeals for the Seventh Circuit held that employee stock ownership plan (ESOP) participants failed to state a claim that the plan's fiduciaries breached the duties of prudence and loyalty under the Employee Retirement Income Security Act of 1974 (ERISA), among other claims, by failing to promptly and publicly disclose safety issues with a particular model of a Boeing airplane, which caused the participants to acquire and hold Boeing stock at an artificially inflated price.