Lawyers representing participants and beneficiaries of Xerox’s 401(k) retirement plans have filed suit against the giant copier maker, alleging officials withheld information about Xerox’s finances.
The suit charged that the sealed lips among Xerox management effectively encouraged participants and beneficiaries to continue putting “substantial investments” into company stock.
Plaintiffs claimed Xerox violated its fiduciary duties by its running of the retirement plans.
Lawyers said the suit focuses on company acts from February 15, 1998 to the present
Xerox recently announced that it had used a using a variety of improper accounting techniques to accelerate the recognition of some $6.4 billion in equipment revenue from 1997 through 2001. Revenues for 1997-2001 have been reduced by 2% to $91 billion.
The suit joins a long line of litigation making virtually identical company stock claims against a wide variety of companies.
The resulting corporate tumult has prompted by US lawmakers and regulators to promise reforms over company stock rules.