RadioShack Joins BP, Whole Foods in Beating Stock Lawsuits

RadioShack Corp. is the third major company in less than a week to defeat a lawsuit by employees claiming they lost retirement savings because their employer allowed them to invest in poorly performing company stock (In re 2014 RadioShack ERISA Litig., N.D. Tex., No. 4:14-cv-00959-O, 9/29/16).

In dismissing the lawsuit against RadioShack, a Texas-based federal judge found on Sept. 29 that the employees failed to allege—either by reference to public information or inside corporate knowledge—that the people running RadioShack’s 401(k) plans breached their duties by continuing to offer company stock as an investment.

This decision comes three days ...