Workers Who Purchased Employer Stock in 401(k) May Have Legal Recourse Following Company Bankruptcy

(EMAILWIRE.COM, March 12, 2011 ) New York, NY Â– Retirement plan and 401(k) participants who purchased employer stock may have legal recourse if their company filed for bankruptcy and a breach of fiduciary duty occurred. When a business which offers their own employer stock in retirement plans fails to take certain actions to protect these plans from losses resulting from a company bankruptcy, 401(k) participants may be able to file a lawsuit with the help of an ERISA lawyer to recover compensation for a breach of fiduciary duty. If your company filed for bankruptcy protection and you purchased employer stock in your 401(k) or retirement plan, visit http://www.classaction.org/bankrupt-companies-and-retirement-plans.html and complete the free case evaluation form to find out if you have legal recourse.

According to the Employee Retirement Income Security Act of 1974 (ERISA), fiduciaries are required to meet certain minimum standards of conduct. For instance, if a company which offers company stock in retirement plans files for bankruptcy, it is obligated to take certain actions to protect the plans from losses caused by such an action. A fiduciary may have breached their legal duty under ERISA if they neglected to manage plan assets, for example, by continuing to offer company stock as an investment option, and investing and holding worker or matching contributions in the stock when they realized or should have realized that employer stock was not an appropriate investment option due to the companyÂ’s financial standing. Additionally, a breach of fiduciary duty may have occurred if the fiduciaries did not disclose thorough and correct information regarding the companyÂ’s financial results and operations.

If your company filed for bankruptcy and you invested employer stock in your retirement plan, visit Class Action.org to learn more about your legal rights. After reviewing the information on company stock and bankruptcy, take advantage of this siteÂ’s free case evaluation form, which may help determine if you are eligible for legal recourse. This online case review is offered at no cost and with no obligation, courtesy of the 401(k) lawyers and ERISA attorneys working with the site.

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Class Action.org is dedicated to protecting consumers and investors in class actions and complex litigation throughout the United States. Class Action.org keeps consumers informed about product alerts, recalls, and emerging litigation and helps them take action against the manufacturers of defective products, drugs, and medical devices. Information about consumer fraud issues and environmental hazards is also available on the site. Visit http://www.classaction.org today for a no cost, no obligation case evaluation and information about your consumer rights.

ClassAction.org
Tara Nagel
800-449-1970
pressrelease@lawyercentral.com