Benefits & Executive Compensation News

IBM Renews Stock-Drop Case Defense Before High Court Appearance

Oct. 25, 2019, 5:10 PM

International Business Machines Corp.‘s retirement plan committee has reiterated to the U.S. Supreme Court its defense to an ERISA-based lawsuit in advance of Nov. 6 oral arguments.

IBM executives weren’t obligated to use their inside information to benefit employees holding company stock in their employer-sponsored retirement plans, the committee argued in its final reply brief, filed on Oct. 24.

Meanwhile, the plan participants and academics supporting them want the justices to use their case to soften the standards set out in Fifth Third Bancorp v. Dudenhoeffer. That 2014 case set a high pleading bar for participant stock-drop suits...

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