MenuClose

Supreme Court hands Amgen win in suit over employee stock plan

February 4, 2016

Westlaw Journal
By Peter H. Hamner

The U.S. Supreme Court has ruled Amgen Inc. employees did not adequately allege the biopharmaceutical developer violated its fiduciary duties byoffering its stock to employees when it knew the company was in trouble.

[…]

Timothy Kennedy of Montgomery McCracken Walker & Rhoads, who was not involved in the case, said the Supreme Court in Amgen made it clear that Fifth Third was not a plaintiff-friendly decision. “The Supreme Court’s reminder in Amgen that plaintiffs must plausibly allege there was an alternative available to the fiduciaries that would not harm the fund, I think, is a pretty high hurdle for plaintiffs as it is tough to show how a prudent fiduciary might conclude that its employer stock fund would not be harmed by the public disclosing of negative information about the fund,” he said.

[…]

Click here to view the PDF of the full article.