In the article “Supreme Court Won’t Hear IBM 401(k) Dispute for Second Time,” Bloomberg Law reports that the Supreme Court refused to hear arguments for a second time in a fight over company stock in IBM Corp.'s 401(k) plan. The decision leaves in place a ruling from the U.S. Court of Appeals for the Second Circuit that green-lighted a proposed class action that plan participants filed after the value of IBM shares dropped by more than 7%.
Bloomberg Law turned to partner and co-leader of the firm’s ERISA litigation team Kim Jones for insight on how the Second Circuit’s decision could impact other stock drop cases in the future. “I don’t think it changes that much if you’re outside of the Second Circuit,” said Jones.
Jones noted “Even since the Jander decision first came out, we’ve seen, I think, four decisions where courts have dismissed these stock drop cases.”