READ MORE Securities LEGAL NEWS
The Edison lawsuit involves some 40 mutual funds that are managed at a higher cost and open to public investment. The employees allege that Edison could have chosen to invest in the same funds through a lower cost, institutional investment program. Therefore, the employees claim that the company did not act in their best interests by choosing the more expensive funds.
ERISA regulates employee benefit and pension plans, both of which can be tied into stock options. Employees and retired employees can file a lawsuit against a company and/or its officers for breaching fiduciary responsibilities and putting stock options and pension plans at risk.
The case is Tibble v. Edison International, 13-550.