Viability of ERISA Stock-DropSuits in a Post-Dudenhoeffer World

In 2014, the Supreme Court of the United States issued a unanimous decision in Fifth Third Bancorp v. Dudenhoeffer. On first glance, Dudenhoeffer’s holding appeared plaintiff-friendly – the Court held that fiduciaries of an employee stock ownership plan (ESOP), which is a qualified retirement plan designed to primarily invest in employer securities, are not entitled to a ‘‘presumption of prudence’’ when a participant challenges a fiduciary’s decision to acquire or hold employer stock under the Employee Retirement Income Security Act of 1974, as amended (ERISA).