Benefits & Executive Compensation News

IBM 401(k) Investor Urges SCOTUS for Right to Contest Stock Drop

Sept. 25, 2019, 2:48 PM

Corporate insiders who serve as fiduciaries of 401(k) plans holding their company’s stock have obligations under federal benefits law beyond what’s asked of them under securities law, a participant in International Business Machines Corp.‘s 401(k) plan told the U.S. Supreme Court.

Larry Jander wants the justices to uphold a federal appeals court decision allowing him to sue IBM’s retirement plan committee under the Employee Retirement Income Security Act over the IBM stock in the company’s 401(k) plan. Jander says he and others lost retirement savings when corporate insiders failed to promptly disclose struggles in IBM’s microchip business that led...

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