Click here to subscribe today or Login.
First Posted: 12/13/2013
(AP) The Supreme Court will weigh in on a lawsuit against Fifth Third Bancorp accusing management of irresponsibly investing employee retirement money in the bank’s then-failing stock.
The justices agreed Friday to hear the appeal from the Cincinnati-based bank.
People in the bank retirement plan say the institution started making risky subprime loans, but executives should have known it was risky to invest retirement funds in bank stock. Stock dropped 74 percent between 2007 and 2009, losing millions of dollars. The fund participants sued, saying executives who decided to make the risky loans also should have known not to invest retirement money in bank stock.
The 6th U.S. Circuit Court of Appeals allowed the lawsuit to proceed. Justices will review that decision.
The case is Fifth Third Bancorp v. Dudenhoeffer, 12-751.
Associated Press