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fiduciary liability "follow-on" claims

Fiduciary liability "follow-on" claims are litigation instituted 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.

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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.