Schmalz v. Sovereign Bancorp, Inc.

MEMORANDUM

DITTER, District Judge.

This class action involves an employee stock ownership plan and the contention that its participants should not have been offered their employer’s stock because of the company’s deteriorating financial condition. It is before me on the defendants’ motion to dismiss. For the reasons that follow, I will dismiss all but Count IV of plaintiffs’ complaint.

I. INTRODUCTION

The plaintiffs were participants in defendant Sovereign Bancorp, Inc.’s (“Sovereign”) employee retirement savings plan. The Plan held Sovereign stock as an investment. The plaintiffs have brought…