IBM Defeats Worker Suit Alleging Age-Based Layoffs at Kyndryl

IBM Corp. is free of all claims in a suit alleging a company it spun off targeted older employees for layoffs, but the new entity must face one worker’s bias allegations.

The workers argued IBM and Kyndryl should both be liable even though the layoffs happened more than a year after the IT infrastructure services company was spun off. But their alter ego, single employer, and joint employer liability theories all fail, dooming the claims against IBM, the US District Court for the Southern District of New York said Thursday.

MaryKathryn Doheny and Tony DeGruccio, both in their 60s, had ...