Countrywide Financial Corporation created for its employees a pension plan that allowed employees to select how their

Question:

Countrywide Financial created for its employees a pension plan that allowed employees to select how their pension plan amounts are invested, including investing in the of Countrywide. When the value of the of Countrywide Financial declined from over $40 per share to $6 in a six-month period in 2007 and 2008 due to the collapse of the subprime lending market, Countrywide employees sued Countrywide and its directors for breaching a fiduciary duty to the employees by not exercising its discretion to suspend both offering Countrywide stock as a plan investment and matching employees' investment in Countrywide stock. Has the board of directors breached a fiduciary duty to the employees?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...