9th Circ. Nixes ERISA Backdating Suit Against CSC

Law360, New York (October 1, 2010, 6:49 PM EDT) -- An appeals court has tossed a class action filed by current and former employees of Computer Science Corp. who claim the company mismanaged their 401(k) plans by investing heavily in its own stock, which took a nosedive after reports of options backdating by executives.

Fund managers did not violate the Employee Retirement Income Security Act by hiding relevant information about the company’s stock, because CSC executives' backdating was both legal and fully disclosed, according to the opinion issued Thursday by Judge Mark Bennett, a District Judge...
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