Bankruptcy Company Stock Investigation

Keller Rohrback L.L.P. is currently investigating companies that filed for bankruptcy protection that had their own company stock in their 401(k) or ESOP ERISA retirement plans, and failed to take appropriate action to protect the Plans from losses caused by the bankruptcy. A breach of fiduciary duty under ERISA occurred if the fiduciaries failed to prudently manage Plan assets, by among other things, continuing to offer their own company stock as a Plan investment option, and investing and holding employee and/or matching contributions in the stock at a time when they knew or should have known because of the precarious financial condition of the company that the stock was not a suitable and appropriate investment option. A breach also may have occurred if the fiduciaries failed to disclose complete and accurate information to employees regarding the Company’s business, and financial results and operations, thereby encouraging participants and beneficiaries to continue to make and maintain substantial investments of company stock in the 401(k) or ESOP Plans. If you would like more information regarding our Bankruptcy Company Stock investigation, please CONTACT US.