Robbins Geller Rudman & Dowd LLP Files Class Action Suit against International Business Machines Corporation
By Business Wire News
By Business Wire News
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 firstname.lastname@example.org. 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 LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld