SHAREHOLDER ALERT: Pomerantz Law Firm Announces the Filing of a Class Action Against International Business Machines Corporat...
March 04 2015 - 2:31PM
Pomerantz LLP announces that a class action lawsuit has been filed
against International Business Machines Corporation ("IBM" or the
"Company") (NYSE:IBM) and certain of its officers. The class
action, filed in United States District Court, Southern District of
New York, is on behalf of a class consisting of all persons or
entities who purchased IBM securities between April 17, 2014 and
October 17, 2014 inclusive (the "Class Period"). This class action
seeks to recover damages against Defendants for alleged violations
of the federal securities laws under the Securities Exchange Act of
1934 (the "Exchange Act").
If you are a shareholder who purchased IBM securities during the
Class Period, you have until May 1, 2015 to ask the Court to
appoint you as Lead Plaintiff for the class. A copy of the
Complaint can be obtained at www.pomerantzlaw.com. To
discuss this action, contact Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, x237. Those who inquire by e-mail are encouraged to include
their mailing address, telephone number, and number of shares
purchased.
IBM provides information technology (IT) products and services
worldwide. The company's Global Technology Services segment
provides IT infrastructure and business process services, such as
outsourcing, processing, integrated technology, cloud, and
technology support. Its Global Business Services segment offers
consulting and systems integration services for strategy and
transformation, application innovation services, enterprise
applications, and smarter analytics; and application management,
maintenance, and support services.
The Complaint alleges that throughout the Class Period,
Defendants issued false and misleading statements and/or omitted
adverse facts regarding the true value of IBM's micro-chip
manufacturing operations, known as its Microelectronics business.
The Complaint further alleges that defendants failed to record an
impairment in the value of the Company's 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. Defendants' false and misleading statements and/or
omissions during the Class Period caused IBM's common stock to
trade at artificially inflated prices, reaching a high of over $196
per share.
On October 20, 2014, IBM issued a press release announcing that
GlobalFoundries had agreed to "acquire" its Microelectronics
business, including intellectual property rights, for a payment of
$1.5 billion from IBM to GlobalFoundries, and that IBM would be
taking a $4.7 billion charge to earnings on the Microelectronics
unit. The same day, IBM announced disappointing financial results
for its 2014 third quarter, the period ended September 30, 2014,
including the $4.7 billion charge, which included an impairment to
reflect fair value less estimated costs to sell the
Microelectronics business and other estimated costs related to the
transaction, including cash consideration expected to be
transferred to GlobalFoundries of approximately $1.5 billion.
Defendants also updated IBM's 2014 guidance, stating that rather
than the Company's earlier guidance of $18 per share, operating
earnings per share for 2014 would decline between 2% and 4%
compared to $16.64 per share in 2013.
On this news, the price of IBM common stock fell more than $12
per share, from $182.05 per share on October 17, 2014 to close at
$169.10 per share on October 20, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida,
and San Diego, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L. Pomerantz, known as the dean of the
class action bar, the Pomerantz Firm pioneered the field of
securities class actions. Today, more than 70 years later, the
Pomerantz Firm continues in the tradition he established, fighting
for the rights of the victims of securities fraud, breaches of
fiduciary duty, and corporate misconduct. The Firm has recovered
numerous multimillion-dollar damages awards on behalf of class
members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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