Recent Development by Matthew Almon
Centralized actions from current and former participants in an Electronic Data Systems Corporation (EDS) 401(k) retirement plan (Plan) were separated from related securities litigation in May 2003. In November 2004, the United States District Court for the Eastern District of Texas certified a plaintiff class for three Employee Retirement Income Security Act of 1974 (ERISA) “prudence claims,” alleging that EDS and several of its officers and directors (defendants) breached fiduciary duties to the Plan. After the United States Court of Appeals for the Fifth Circuit granted the defendants' petition for interlocutory appeal and oral argument was presented, the parties participated in a one-day mediation session and offered a settlement. The district court stayed the case, and the Fifth Circuit stayed the appeal pending consideration of this proposed settlement. Finding that the proposed settlement was “not in the best interests of the proposed class members,” the United States District Court for the Eastern District of Texas held that approval of the settlement should be denied. In re Electronic Data Systems Corp. “ERISA” Litigation, 6:03-MD-1512, 6:03-CV-126, 2005 WL 1875545, at *6-7 (E.D. Tex. June 30, 2005).
About the Author
Matthew Almon. J.D. candidate 2007, Tulane University School of Law; B.A. 2002, University of Tulsa.
Citation
80 Tul. L. Rev. 2007 (2006)