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Edison 401(k) Plan Case Dismissal

A judge in the U.S. District Court dismissed this case filed by more than 20,000 Edison International workers, accusing the CEO and vice president of offering artificially inflated Edison stock in the Plan, on the basis that the plaintiffs failed to identify what the defendants should have done instead of offering the company stock. The plaintiffs argued that they met this standard by alleging that the Edison executives concealed fraud concerning improprieties in Edison’s dealings with the California Public Utilities Commission. The judge ruled that the plaintiffs must also show that a prudent plan fiduciary could not have concluded that “disclosing the fraud would do more harm than good.” The plaintiffs seemingly intend to re-plead based on the guidance presented by the court, so that they can better articulate their position within the context of the standards.

www.bna.com; Pension & Benefits Daily; July 8, 2016.