ERISA Litigation: Bankrupt Company Stock Investments
Bankrupt Companies and Retirement Plans
Did you purchase your own company’s stock as part of your 401(k) or ESOP ERISA retirement plan, only to have your company file for bankruptcy? Complete our free case review form today to find out if your company upheld its fiduciary duties under the Employee Retirement Income Security Act (ERISA) regarding bankruptcy and retirement plans.
ERISA Litigation: Bankrupt Companies and Retirement Plans
Companies who offer their own company stock as an investment option in their 401(k) or ESOP ERISA retirement plans have certain obligations. When these companies file for bankruptcy protection, they are required to take certain actions to protect the plans from losses resulting from the bankruptcy. In general, a fiduciary may be held accountable for a breach of fiduciary duty if they:
- Failed to manage plan assets by continuing to offer company stock as an investment option
- Invested and held employee and matching contributions in the stock when they realized or should have realized that company stock was not a suitable investment option due to the company’s financial struggles
- Failed to disclose thorough and accurate information regarding the company’s financial results
If you invested in company stock in your 401(k) or ESOP plan and your employer filed for bankruptcy, you may be able to take legal action if the fiduciary breached its legal duties under ERISA. Complete our free case review form today to find out if you have legal recourse. Our ERISA lawyers and 401(k) attorneys are providing this online case review at no cost and with no obligation, so do not hesitate to take advantage of this complimentary legal review today.