Moench v. Robertson

OPINION OF THE COURT

GREENBERG, Circuit Judge.

This case requires us to decide the following difficult question: To what extent may fiduciaries of Employee Stock Ownership Plans (ESOPs) be held liable under the Employee Retirement Income Security Act (ERISA) for investing solely in employer common stock, when both Congress and the terms of the ESOP provide that the primary purpose of the plan is to invest in the employer’s securities. The district court held that fiduciaries cannot be liable in such cases, and therefore it granted the fiduciaries’ motion for summary judgment. Because we…