Robbins Geller Rudman & Dowd LLP Files Class Action Suit against International Business Machines Corporation
03 March 2015 - 2:00PM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/ibm/) today announced that a class
action has been commenced on behalf of an institutional investor in
the United States District Court for the Southern District of New
York on behalf of purchasers of International Business Machines
Corporation (“IBM”) (NYSE:IBM) common stock during the period
between April 17, 2014 and October 17, 2014 (the “Class
Period”).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff’s counsel, Samuel H. Rudman
or David A. Rosenfeld of Robbins Geller at 800/449-4900 or
619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member
of this class, you can view a copy of the complaint as filed or
join this class action online at http://www.rgrdlaw.com/cases/ibm/.
Any member of the putative class may move the Court to serve as
lead plaintiff through counsel of their choice, or may choose to do
nothing and remain an absent class member.
The complaint charges IBM and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
IBM is a multinational technology and consulting corporation that
manufactures and markets computer hardware and software products
and provides its customers with various information technology
related services.
The complaint alleges that during 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. Specifically,
according to the complaint, 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.
Then, 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.
Plaintiff seeks to recover damages on behalf of all purchasers
of IBM common stock during the Class Period (the “Class”). The
plaintiff is represented by Robbins Geller, which has expertise in
prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S.
and international institutional investors in contingency-based
securities and corporate litigation. The firm has obtained many of
the largest securities class action recoveries in history,
including the largest securities class action judgment. Please
visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLPSamuel H. Rudman,
800-449-4900orDavid A. Rosenfelddjr@rgrdlaw.com
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