The United States Court of Appeals held that Judge Castel in the SDNY had properly dismissed claims of a breach of fiduciary duty under ERISA asserted against Morgan Stanley Investment Management by the Pension Benefit Guaranty Corporation, which was pursuing the claims on behalf of the pension plan of the now-bankrupt St. Vincent's Hospital in Greenwich Village.

In an opinion written by Judge John Walker, Jr., a panel of the Second Circuit affirmed dismissal of a suit brought by employees of Citigroup over losses they incurred by investing their retirement funds in Citigroup stock. The Second Circuit became the sixth appellate court to hold that ERISA fiduciaries are entitled to a presumption of prudence regarding their decisions to continue to allow plan investments in employer stock. The Second Circuit also held that plan fiduciaries do not have an affirmative duty to disclose to plan participants non-public information regarding the expected performance of company stock.

Paul, Weiss client the Alaska Retirement Management (ARM) Board settled its $2.8 billion lawsuit against Mercer Inc., an investment services and consulting group of Marsh & McLennan Cos., for $500 million. The settlement is the largest such settlement in history for this kind of claim.