Previously in stock-drop cases courts used a presumption of


Previously in stock-drop cases, courts used a presumption of prudence standard, presuming investment of company stock in company pension plans to have been prudent and therefore valid, despite problems with the stock.

But a recent Supreme Court case ruled that the managers of company stock funds enjoy no special presumption of prudence.

Discuss the potential impact of this ruling.

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Operation Management: Previously in stock-drop cases courts used a presumption of
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