A Collaboration with University of Pittsburgh   

Federal judge rules trustee not responsible for losses in UAL employee stock plan

[JURIST] A federal judge has ruled that State Street Bank and Trust Company [bank website] will not be held responsible for major losses in a United Airlines (UAL) [corporate website] employee stock-ownership plan. Over 70,000 United employees and retirees filed a class action lawsuit [JURIST report] in 2003 alleging that the trustee bank held on to UAL stock for too long, watching it rapidly deteriorate in value, despite knowing that the corporation was unstable. US District Court Judge Samuel Der-Yeghiayan disagreed, saying State Street did not know that United was nearing bankruptcy, so it could not have been expected to sell the UAL stock. A previous settlement with the employee stock-ownership plan committee allows participants to split $5.25 million, which is expected to give each employee and retiree only $20. The plaintiffs plan to appeal the ruling. AP has more.

Previously on JURIST's Paper Chase...

Support JURIST

We rely on our readers to keep JURIST running

 Donate now!

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.