Jerry Summers, Individually and on Behalf of All Others Similarly Situated v. State Street Bank & Trust Company, and Ual Corporation Esop Committee

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• noting source of duty for fiduciaries is excessive risk, and “[h]ow excessive would depend in the first instance on the amount and character of the employees’ other assets”
• noting the irresponsibility of investing retirement savings “in a single stock that, while worth as much as its market valuation (as far as anyone not possessing inside information could know), was extremely risky”
• calling the duty to diversify an “included” duty in the duty of prudence
• noting tension between employee interests and goal of ESOP “is not acute if the participants in the ESOP have adequate sources of income or wealth that are not correlated with the risk of [employer] stock, so that the ESOP is not their primary financial asset”
• “The time may have come to rethink the concept of an ESOP, a seemingly inefficient method of wealth accumulation by employees because of the underdiver-sification to which it conduces....”
• “The goal of an ESOP is to give employees ... a larger stake in the company’s fortunes.”

Source: CourtListener parenthetical corpus (CC0).