Zamansky LLC represents participants in the employee stock ownership plan (“ESOP”) for IBM, and has alleged that IBM improperly concealed the over-valuation of its Microelectronics business for nine months in 2014, ultimately causing harm to investors that the ESOP’s fiduciaries should have prevented. After winning an important victory in this case at the Second Circuit Court of Appeals, IBM appealed to the United States Supreme Court.
At the Supreme Court, we argued that IBM had improperly devoted the first third of its brief “to pressing an argument—that ERISA fiduciaries who are also corporate insiders are not required to use knowledge gained in their corporate capacity in making fiduciary decisions—which Petitioners did not raise before the district or appellate court.” On January 14, 2020, the Supreme Court agreed with us, and refused to entertain IBM’s new arguments. The Supreme Court also decided to send the case back to the Second Circuit—the same court that had previously allowed plaintiff to pursue these claims—where we look forward to continuing to pursue relief on behalf of our clients who lost money because of IBM’s actions.
Recent press can be found here:
- High Court Kicks IBM Stock-Drop Case Back To 2nd Circ. (Law360)
- Supreme Court Sends IBM 401(k) Dispute Back For More Analysis (Bloomberg Law)