NEW YORK (TheStreet) -- Shares of Chevron (CVX) - Get Report were lower in mid-afternoon trading on Tuesday as a California judge threw out a lawsuit that alleged the energy giant breached its fiduciary duties by putting costly and poorly performing investment options in a $19 billion employee savings plan.
Chief Judge Phyllis Hamilton of the U.S. District Court in Oakland said the Chevron employees failed to raise a "plausible inference" of wrongdoing, Reuters reports.
"The mere fact that the fund's price dropped is not sufficient to state a claim for breach of fiduciary duty," the judge wrote.
The plaintiffs have until Sept. 30 to file an amended complaint.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings team rates Chevron as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.
You can view the full analysis from the report here: