As we continue to see the impact of the global financial crisis and its effect on markets and stock values, we have also seen a dramatic increase in so-called ERISA "stock drop litigation." Any company with employer stock in its 401(k) plan is at risk of being the target of such litigation when the stock price drops. In these ERISA class actions following the decline of company stock, officers and directors and plan administrators are often sued individually along with the company. When there are substantial share price declines, bankruptcies and government takeovers - as with the current financial crisis - the litigation challenges become even more challenging.
Please join us for a 30-minute teleconference, the next in our continuing series on the financial crisis, in which we will address such questions as:
- How companies can proactively limit their exposure to stock drop actions and seek to insulate certain officers and directors from liability
- Strategies to explore in defending officers, directors, plan administrators and companies in stock drop litigation
- How companies might respond to the legal theories pursued by Plaintiffs in recent cases against financial services companies
- Recent legal trends and what the future holds
Mayer Brown's Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm's global resources from multiple practices and offices, the Initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.