Securities Class Action Filed Against International Business Machines Corporation
Violations of federal securities laws as a result of a series of materially false statements. The Complaint accuses Defendants of violations of the Securities Exchange Act of 1934 by virtue of their failure to disclose, during the Class Period, that the Company failed to record an impairment in the value of its Microelectronics business in conformity with applicable accounting standards, which materially inflated IBM’s earnings during the Class Period and rendered the Company’s 2014 earnings guidance materially false and misleading. According to the Complaint, IBM announced on October 20, 2014 that Globalfoundries had agreed to “acquire” its micro-chip manufacturing operations, or “Microelectronics” business, for a payment of $1.5 billion from IBM to Globalfoundries, and that IBM would be taking a $4.7 billion charge on the Microelectronics unit, which included an impairment to reflect fair value less estimated costs to sell the Microelectronics business and other estimated costs related to the transaction. IBM also announced disappointing financial results for its 2014 third quarter and reduced its 2014 guidance, stating that earnings per share for 2014 would decline between 2%-4% compared to $16.64 per share in 2013. On this news, the price of IBM shares declined significantly. Filed in S.D.N.Y.
Lead Plaintiff Deadline: The deadline to file for lead plaintiff in this action is 5/1/2015.
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