The court found for the defense in Quatrone v. Gannett Co. Inc. et al., in a rare instance of a certified-class ERISA case going to trial.
Retained by Sidley Austin
Background
Plaintiffs represented a class of participants in Gannett’s 401(k) plan who alleged that the committee in charge of the plan breached its fiduciary duties. Specifically, plaintiffs claimed that following a spin-off, the committee failed to liquidate a legacy stock fund quickly enough. Plaintiffs sought more than $58 million in damages. This litigation represented the first time an ERISA matter on this topic went to trial.
Retention and Testimony
Counsel for the defense retained Jennifer Marietta-Westberg of Cornerstone Research to respond to plaintiffs’ economic experts and address damages. Dr. Marietta-Westberg testified at trial on the results of an empirical analysis assessing how similarly situated fiduciaries handled legacy company stock funds and the flaws in plaintiffs’ damages claim, among other issues.
Outcome
After a three-day bench trial in the U.S. District Court for the Eastern District of Virginia, the court found that because the committee followed a prudent process and acted as a hypothetical prudent fiduciary would have, there was no breach of fiduciary duty, marking a complete victory for our client. The court’s ruling cites Dr. Marietta-Westberg’s testimony on multiple issues.
Washington
