SunTrust Banks’ decision at the onset of the recession to allow its employee retirement plan to continue investing in bank stock as it sustained billions in losses and the housing market collapsed is at the heart of multidistrict litigation that a federal judge has said will now proceed against the banking company as a class action.
U.S. District Judge Richard Story decided Aug. 17 that certifying the eight-year-old litigation as a class action would “help bring an efficient resolution to the case.” The class includes an estimated 50,000 individuals who either participated in or were beneficiaries of SunTrust’s 401(k) savings plan from May 15, 2007, through March 30, 2011, when the bank’s stock was being pounded because of losses stemming from its mortgage portfolios.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
