Judge Trims IBM Ponzi Scheme Suit

Law360, New York (April 4, 2011, 3:44 PM EDT) -- A federal judge in Pennsylvania trimmed three claims Thursday from Devon IT Inc.'s fraud and breach of contract suit accusing four IBM Corp. vice presidents of perpetrating a Ponzi scheme that sucked in capital for canceled projects.

Judge Joel H. Slomsky of the U.S. District Court for the Eastern District of Pennsylvania granted a motion by IBM to throw out claims that it participated in a breach of fiduciary duty and aided and abetted a pattern of racketeering.

The judge also agreed to dump a claim...
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