Stock drop case settles for over $4 million

A settlement of over $4 million has been approved by the U.S. District Court for the District of Rhode Island in a recent stock drop case, In re Textron, Inc. ERISA Litigation. In this case, participants in Textron's retirement plan alleged that the fiduciaries breached their duties under ERISA with respect to the inclusion of the Textron Stock Fund in the plan. In an earlier order, the Court explained that the participants "claim that the defendants are liable because they made misleading statements about Textron's financial condition, failed to disclose material adverse information about the company, and allowed class members to make what the defendants knew or should have known were imprudent investments in the Fund."

Attorneys fees were also awarded.