Unit 5 Assignment Forum

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Unit 5 Assignment Forum

Question 1

Whitley vs. BP, P.L.C. case study highlights several factors that led to an appellate court finding an amended complaint from stockholders inadequate and a district court erring by granting their motion to amend. One key element was related to requirements set forth by the Supreme Court regarding stock-drop suits; specifically, their complaint failed to meet these standards when alleging violations of the Employee Retirement Income Security Act (ERISA). Accordingly, specific factual allegations are needed to support their contention that fiduciaries of pension plans either acted imprudently or violated their duty of loyalty obligations. Additionally, the appellate court noted the type of pension plans involved in its ruling: defined contribution plans such as BP Stock Fund. They noted that stockholders had failed to present sufficient facts demonstrating fiduciaries' obligations under inside information or providing complete and accurate information...