IBM’s Surprise Loss in 401(k) Stock Fight Heads to Supreme Court (1)

International Business Machines Corp. convinced the U.S. Supreme Court to wade into a fight over IBM stock in the company’s 401(k) plan.

The justices agreed June 3 to review a surprise decision from the U.S. Court of Appeals for the Second Circuit that allowed employees participating in the company’s 401(k) retirement plan to move forward with a proposed class action lawsuit they filed in 2015 after IBM’s stock dropped by 7 percent.

The lawsuit, led by Larry Jander, alleges the Retirement Plan Committee of IBM—run by company executives—continued to invest retirement plan funds in IBM stock even though it knew ...