Category Archives: Fiduciary Duty

Employee’s and Teacher’s Retirement System of Alabama

Members of the Employees’ and Teachers’ Retirement Systems of Alabama sued David Bronner, executive officer of those systems, claiming he had failed to invest system funds so that they would bring the highest returns. Apparently the plaintiffs weren’t fond of golf courses and office buildings in Alabama. The Alabama Supreme Court ruled that the Circuit Court should dismiss the complaint because Bronner not only has great discretion to choose investments, but also because it’s not the Court’s role to constantly monitor Bronner’s decisions. See, Supreme Court of Alabama, Oct. Term, 2014-2015, 1110472, Ex parte David Bronner (In re: Tonya Denson and Venius Turner v. David Bronner et al., Montgomery Circuit Court, CV-11-900738)

Employee Stock Plans

If you have a retirement plan through your employer that invests in the stock of the employer company, then you should be aware that the company has no duty to inform you that the stock may be overvalued. This is true even if they have insider information that the stock may soon loose most of its value. So buyer beware. See Supreme Court of the United States, Fifth Third Bancorp Et Al. v. Dudenhoeffer, et al., Certiorari to the United States Court of Appeals of the Sixth Circuit No. 12–751. Argued April 2, 2014—Decided June 25, 2014.