fiduciary liability "follow-on" claims
Litigation by 401(k) plan participants (sometimes called "tag-along" claims)
against the directors and officers of corporations who are also defendants
in securities class action lawsuits. One notable fiduciary liability "follow-on"
claim involves the directors and officers of Enron Corporation, a number of
whom also served as trustees of the firm's 401(k) retirement plan. Among the
allegations associated with that case are assertions that the corporation's
directors and officers issued intentionally misleading statements about the
prospects of Enron stock as well as claims that plan participants were unfairly
"locked out" of (i.e., prevented from selling) their holdings of Enron stock
during a period in which the value of Enron shares plummeted.