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IBM Beats ERISA Lawsuit Over Company Stock in 401(k), Again

Oct. 2, 2017, 1:30 PM

The retirement plan committee of International Business Machines Corp. and its executives again defeated a lawsuit accusing them of failing to mitigate a “foreseeable drop” in the company’s stock and protect participants from losing millions of dollars in retirement savings (Jander v. Ret. Plans Comm. of IBM, 2017 BL 346271, S.D.N.Y., 1:15-cv-03781-WHP, motion to dismiss granted 9/29/17).

The participants offered three alternative actions IBM and the executives could’ve taken to mitigate the risks to the plan, but this wasn’t enough to support a fiduciary breach claim, a federal judge in New York held Sept. 29. Those three alternative ...