context: As other courts have noted, if plan fiduciaries were required to sell employer stock in the event of a decline, plan fiduciaries would be placed in the untenable position of facing litigation in the event that the price of company stock rises after the plans sell off the assets.
citation_a.signal: see also
citation_a.identifier: 392 F.3d 636, 639-40
citation_a.parenthetical: allowing a claim for liquidating company stock following a 60% decline to proceed because the stock "rebounded sharply" months after the sale
citation_a.sentence: See Kirschbaum, 526 F.3d at 256; Moench, 62 F.3d at 571-72 (“[C]ourts must recognize that if the fiduciary, in what it regards as an exercise of caution, does not maintain the investment in the employer’s securities, it may face liability for that caution, particularly if the employer’s securities thrive.”); see also Tatum v. R.J. Reynolds Tobacco Co., 392 F.3d 636, 639-40 (4th Cir.2004) (allowing a claim for liquidating company stock following a 60% decline to proceed because the stock “rebounded sharply” months after the sale).
citation_b.signal: see
citation_b.identifier: 62 F.3d 571, 571-72
citation_b.parenthetical: "[C]ourts must recognize that if the fiduciary, in what it regards as an exercise of caution, does not maintain the investment in the employer's securities, it may face liability for that caution, particularly if the employer's securities thrive."
citation_b.sentence: See Kirschbaum, 526 F.3d at 256; Moench, 62 F.3d at 571-72 (“[C]ourts must recognize that if the fiduciary, in what it regards as an exercise of caution, does not maintain the investment in the employer’s securities, it may face liability for that caution, particularly if the employer’s securities thrive.”); see also Tatum v. R.J. Reynolds Tobacco Co., 392 F.3d 636, 639-40 (4th Cir.2004) (allowing a claim for liquidating company stock following a 60% decline to proceed because the stock “rebounded sharply” months after the sale).