Second Circuit Adopts Moench Presumption for Plans Mandating Investment in Employer Stock | Practical Law
The US Court of Appeals for the Second Circuit held in Gray v. Citigroup, Inc. that where plan language mandates an employer stock fund, the plan fiduciaries are entitled to a presumption of prudence; and their actions should be reviewed, using an abuse of discretion standard in allowing participants to continue to invest in the fund after a significant drop in price.