IBM Can’t Pause 401(k) Stock Suit While Appealing to SCOTUS

International Business Machines Corp. workers can continue litigating over the employer stock in their retirement without waiting for the company to file a petition with the U.S. Supreme Court.

The U.S. Court of Appeals for the Second Circuit Feb. 4 denied IBM’s motion to put the case on hold. IBM said it will ask the Supreme Court to undo a Second Circuit decision reviving the workers’ lawsuit, which accuses the company’s retirement plan committee of failing to protect workers from a 7 percent drop in IBM stock price.

The Second Circuit’s decision was a rare win for employees challenging drops...