Quatrone v. Gannett Co., Inc.

Plaintiffs brought this action against Defendants on March 22, 2018 for a failure of 401(k) plan fiduciaries to divest plan holdings in a fund comprised of the non-employer stock following a spinoff, which plaintiffs contend violated the Employee Retirement Income Security Act of 1974 and breached fiduciary duties of prudence and diversification.

On September 26, 2018, the district court dismissed the case for failure to state a claim. The Fourth Circuit reversed and remanded that decision on August 11, 2020, holding that plaintiffs plausibly alleged breaches of fiduciary duties. Defendants filed a petition for certiorari with the U.S. Supreme Court, which remains pending.