Labaton Sucharow LLP Files Class Action Lawsuit on Behalf of Investors in International Business Machines Corporation (IBM)
April 01 2015 - 5:22PM
Labaton Sucharow LLP ("Labaton Sucharow") filed a securities class
action lawsuit on April 1, 2015 in the U.S. District Court for the
Southern District of New York. The lawsuit was filed on behalf of
all persons or entities who, between January 22, 2014 and October
17, 2014, inclusive (the "Class Period"), purchased or otherwise
acquired the publicly traded securities of International Business
Machines Corporation ("IBM" or the "Company") (NYSE:IBM).
If you purchased or acquired publicly traded IBM securities
during the Class Period as defined above, you are a member of the
"Class" and may be able to seek appointment as Lead Plaintiff. Lead
Plaintiff motion papers must be filed with the U.S. District Court
for the Southern District of New York no later than May 1, 2015. A
lead plaintiff is a court-appointed representative for absent
members of the Class. You do not need to seek appointment as lead
plaintiff to share in any Class recovery in this action. If you are
a Class member and there is a recovery for the Class, you can share
in that recovery as an absent Class member. You may retain counsel
of your choice to represent you in this action. If you would like
to consider serving as lead plaintiff or have any questions about
this lawsuit, you may contact Rachel A. Avan, Esq. of Labaton
Sucharow, at (800) 321-0476 or (212) 907-0709, or via email at
ravan@labaton.com.
IBM is a global information technology company based in Armonk,
New York. The Company manufactures and sells computer hardware and
software and offers a variety of technology services. Prior to
October 20, 2014, IBM's operations included the Company's
Microelectronics business that was primarily responsible for the
design and production of microchips used in certain of the
Company's server computers and other devices.
The complaint charges IBM and certain of its officers and
directors with violations of Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934, and U.S. Securities and Exchange
Commission Rule 10b-5 promulgated thereunder. The complaint alleges
that during the Class Period Defendants made false and misleading
statements and concealed material information relating to the true
value of the Company's Microelectronics business and the segment's
assets. Specifically, the complaint alleges that, throughout the
Class Period, IBM concealed a substantial decline in value of the
Microelectronics business and its assets, despite a history and
outlook of severe operating losses. Instead, IBM reported values of
approximately $2.4 billion relating to long-lived assets within the
Microelectronics segment in the Company's financial statements
throughout the Class Period.
The truth regarding the value of IBM's Microelectronics business
and its assets was revealed on October 20, 2014, when the Company
announced an agreement to transfer this business to GlobalFoundries
Incorporated along with a $1.5 billion incentive payment. IBM
further disclosed that the Company's Microelectronics business had
lost $700 million in 2013 and was projected to suffer a similar
loss in 2014. In reaction to these disclosure, IBM's stock price
fell $12.95 per share, or 7.11 percent, to close at $169.10 per
share that day.
The magnitude of IBM's overstatement of its assets during the
Class Period was confirmed on October 28, 2014 when the Company
filed its Form 10-Q for the third quarter of 2014. In this
quarterly report, IBM recorded a $4.7 billion charge, more than
half of which represented a total write-off of the entire $2.4
billion value of the long-lived property, plant, and equipment
assets of the Microelectronics business. If you are a member of the
Class, you can view a copy of the complaint online at
http://www.labaton.com/en/cases/Newly-Filed-Cases.cfm.
The plaintiff is represented by Labaton Sucharow, which
represents many of the largest pension funds in the United States
and internationally with collective assets under management of more
than $2 trillion. With nearly 60 full-time attorneys,
Labaton Sucharow's litigation reputation is built on its in-house
team of investigators, financial analysts, and forensic
accountants. Labaton Sucharow has been recognized for its
excellence by the courts and peers, and it is consistently ranked
in leading industry publications. Offices are located in New
York, NY and Wilmington, DE. More information about Labaton
Sucharow is available at www.labaton.com.
CONTACT: Rachel A. Avan, Esq
ravan@labaton.com
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