Lawsuits Proliferate on Employer Stock in 401(k) Plans

More lawsuits are being filed against companies that has substantial amounts of employer stock in their 401(k) plans. In addition to several suits against Enron executives, accountants, and plan fiduciaries, there are lawsuits against Lucent, Global Crossing, Williams Companies, Rite-Aid, Qwest, and Nortel. In each case, the plaintiffs allege that the company provided misleading information about its financial condition, often urging employees to buy or hold company stock at the same time executives were selling.