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IBM 401(k) Lawsuit Settles for $4.75 Million After SCOTUS Trip

April 5, 2021, 2:24 PM

IBM Corp.'s retirement plan committee signed a $4.75 million class settlement in an ERISA lawsuit challenging a 7% drop in company stock price, plan participants told a Manhattan federal judge.

The six-year-old case spawned one U.S. Supreme Court decision and two rulings by the Second Circuit.

The deal, announced April 2, resolves a lawsuit seeking to hold hold IBM corporate insiders liable under the Employee Retirement Income Security Act for a drop in stock price that employees say may have been mitigated if the insiders serving as retirement plan fiduciaries promptly disclosed the company’s struggles.

The parties reached an agreement...

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