Federal Suit Dismissed Against Corporate Officer Represented by Dowd Bennett
On March 24, 2010, a federal lawsuit against a corporate officer represented by Dowd Bennett attorneys Ed Dowd and John Comerford was dismissed upon motion of the defendants. The suit alleged that Dowd Bennett’s client and other defendants breached their fiduciary duties in administering an ERISA plan. The case involved an analysis of the defendants’ fiduciary status under ERISA, the Moench presumption of prudence in the ERISA context, and the safe harbor provided by section 404(c) of ERISA. The Court granted defendants’ motion to dismiss all of plaintiffs’ claims, holding that the complaint’s allegations failed to sufficiently allege that any of the defendants deceived or attempted to deceive the Plan participants and beneficiaries. The Court also held that plaintiffs failed to allege sufficient facts to establish a breach of the duty of loyalty, and failed to establish a basis for vicarious breach of fiduciary duty claims against any of the defendants.