A federal judge has refused to dismiss a massive RICO suit against four high-level IBM executives who are accused of swindling a King of Prussia, Pa., firm into investing $12 million in technology projects by hiding the truth about their market potential and continuing to solicit funds even after one of the projects had been canceled.

In his 32-page opinion in Devon IT Inc. v. IBM Corp. , U.S. District Judge Joel H. Slomsky dismissed a claim against IBM for aiding and abetting the RICO conspiracy, but refused to dismiss claims against IBM for fraud, breach of contract and negligent supervision.