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SCOTUS accepts IBM case that could curb employee stock lawsuits

The lawsuit claims IBM didn’t do enough to protect employees from stock losses from a money-losing chip manufacturing unit.

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Supreme Court building IBM officials contend in their appeal that the suing employees needed to be more specific in their lawsuit. (Photo: Shutterstock)

The U.S. Supreme Court will use a case involving International Business Machines Corp. to consider making it harder for workers to sue when their retirement plans lose money because the employer’s stock price falls.

The justices said they will scrutinize a lawsuit that claims IBM plan managers didn’t do enough to protect employees from stock losses stemming from a money-losing chip manufacturing unit. The company agreed in 2014 to pay GlobalFoundries Inc. $1.5 billion to take the unit, triggering a $12.95 one-day drop in IBM shares.

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