CLEO Logo

School of Management and Labor Relations

Keyword Search

Implications of the LaRue Decision for ESOPs 

by: Rosen, Corey
Source: The National Center for Employee Ownership 

Since a seminal court case in 1985, courts have largely, if not unanimously, concluded that individuals cannot sue ERISA plan fiduciaries for individual losses to the plan. The Internal Revenue Code which governs such suits states that fiduciaries are liable to make good any losses to a plan resulting from a breach of their duties. The argument was that monetary damages could be provided only for the plan as a whole, so employees could sue only on behalf of the plan, not themselves. This article looks at the potential effects on ESOPs.


Details

Link: Implications of the LaRue Decision for ESOPs 
Publication Date: 2008-01-01
Pages: 0