On October 19, 2011, a divided panel of the US Court of Appeals for the Second Circuit issued two long-awaited opinions addressing the legal standard governing breach of fiduciary duty claims brought against administrators of defined-contribution retirement plans in so-called “stock drop” cases. See In re: Citigroup ERISA Litigation, No. 09-3804, and Gearren v. McGraw-Hill Cos., Inc., Nos. 10-792, 10-934. We focus on the Citigroup decision, which was the lead decision and therefore contained the substance of the Second Circuit’s reasoning.

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