NEW YORK -- (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.
Contacts:
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
or
David
A. Rosenfeld
djr@rgrdlaw.com
Source: Robbins Geller Rudman & Dowd LLP
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