IBM Denied Rehearing of Rare 401(k) Lawsuit Revival

International Business Machines Corp.'s retirement plan committee won’t get another chance to defend a lawsuit over company stock in its retirement plan before the U.S. Court of Appeals for the Second Circuit.

The IBM committee wanted the court to reconsider its decision last month reviving a proposed class action by workers who say they lost out on retirement savings when the company’s stock price fell 7 percent.

The December ruling marks a rare win for 401(k) investors in a series of Employee Retirement Income Security Act cases that have been almost universally dismissed.

Courts, following the U.S. Supreme Court’s 2014 ...