Court sides with employees in retirement fund case

Source: AP-EXCITE

WASHINGTON (AP) — The Supreme Court on Wednesday sided with bank employees in a lawsuit against Fifth Third Bancorp that accused management of irresponsibly investing employee retirement money in the bank's then-failing stock.

The unanimous ruling came in a case involving a retirement fund invested primarily in the bank's stock.

The court considered whether those in charge of investing in the fund have the freedom or the duty to direct investment money elsewhere when they have reason to believe the stock price is inflated.

The employees said management knew that borrowers increasingly were defaulting on risky, subprime loans, but concealed that information or misled investors.

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