IBM $4.75 Million 401(k) Stock-Drop Settlement Gets Final Nod

A $4.75 million IBM Corp. class settlement resolving an ERISA lawsuit over a 7% drop in company stock price secured a New York federal judge’s final approval.

Employees alleged IBM corporate insiders were liable under the Employee Retirement Income Security Act for the stock drop, which they said may have been mitigated if the insiders serving as retirement plan fiduciaries promptly disclosed the company’s struggles.

The settlement resolving the six-year-old case was announced in April.

The settlement fund is reasonable, no proposed class member objected or opted out, and the litigation was hotly contested, Judge Colleen McMahon of the U.S. …