Prudential Retirement Ins. and Annuity Co. v. State Street Bank and Trust Co.

U.S. DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
Business Law

New York Law Journal

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District Judge Paul Crotty

PRIAC was ERISA fiduciary for retirement plans investing in two bank trusts managed by State Street. Both trusts lost value due to State Street's breaches of fiduciary duty. In PRIAC's 2007 suit under ERISA §§409 and 502, a judge's 2011 "SJ Decision" dismissed State Street's Massachusetts law-based claims, but not its contribution and defamation claims. After the judge's Feb. 1 "ERISA Decision" awarding it $28 million, PRIAC renewed its motion to dismiss State Street's contribution and defamation claims. The court denied PRIAC judgment. Issues existed on its and State Street's joint liability for contribution. The ERISA Decision did not address disputed fact questions precluding summary judgment on whether State Street, PRIAC, or both breached their disclosure obligations to the retirement plans. On State Street's defamation claims the court determined that—as to the six statements not subject to the common-interest privilege—fact issues remained as to the timing of State Street's disclosures to PRIAC. If State Street disclosed its investment approach to PRIAC before Aug. 22, 2007, PRIAC's statements to the plans would not have been "substantially true."

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