Plaintiffs alleged that State Street Bank & Trust breached its fiduciary duty by continuing to allow participants to invest in GM common stock, even though reliable public information indicated that GM was headed for bankruptcy. The District Court assumed the presumption of prudence would apply at the pleading stage, and held that the plaintiffs had pleaded sufficient facts to rebut the presumption. The Sixth Circuit held that “the presumption of reasonableness adopted in Kuper is not an additional pleading requirement and thus does not apply at the motion to dismiss stage. A plaintiff need not plead enough facts to overcome the presumption in order to survive a motion to dismiss.” Pfeil v. State St. Bank & Trust Co., 671 F.3d 585 (6th Cir. 2012) cert. denied, No.12-256, 2012 WL 4009309 (U.S. Dec. 3, 2012).
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