US top court accepts IBM case that could curb employee stock suits

The U.S. Supreme Court on Monday agreed to decide whether managers of a retirement fund for IBM Corp employees that invested in the company’s stock can be sued for failing to disclose that its microelectronics business was overvalued.

The justices will hear an appeal by IBM’s retirement plan of a lower court ruling allowing the litigation to proceed. IBM is not a defendant in the case.

The U.S. Chamber of Commerce, the American business community’s biggest lobbying arm, had urged the Supreme Court in a brief to hear the case, saying a ruling against the fund could deter companies from offering retirement plans that invest in company stock. Thousands of companies offer such programs.