Allergan Beats Challenge Over Company Stock in 401(k) Plan (Corrected)

Allergan PLC defeated a lawsuit by workers challenging losses in retirement savings held in a company stock fund that devalued amid a federal investigation into a price-fixing scheme among makers of generic drugs.

The former employees didn’t sufficiently allege that Allergan and its directors were plan fiduciaries under the Employee Retirement Income Security Act, Judge Susan D. Wigenton of the U.S. District Court for the District of New Jersey held July 2.

The workers also failed show that Allergan breached its ERISA fiduciary duties by keeping company stock as an investment option in its retirement plan while a federal investigation ...