Previously in stock-drop cases, courts used a presumption of prudence standard, presuming investment of company stock in company pension plans to have been prudent and therefore valid, despite problems with the stock. But a recent Supreme Court case ruled that the managers of company stock funds enjoy no special presumption of prudence. Discuss the potential impact of this ruling.

Question

Previously in stock-drop cases, courts used a presumption of prudence standard, presuming investment of company stock in company pension plans to have been prudent and therefore valid, despite problems with the stock.  But a recent Supreme Court case ruled that the managers of company stock funds enjoy no special presumption of prudence. Discuss the potential impact of this ruling.  ​

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The Answer of Previously in stock-drop cases, courts used a presumption of prudence standard, presuming investment of company stock in company pension plans to have been prudent and therefore valid, despite problems with the stock.  But a recent Supreme Court case ruled that the managers of company stock funds enjoy no special presumption of prudence. Discuss the potential impact of this ruling.  ​

Previously in Stock-Drop Cases, Courts Used a Presumption of Prudence