NEW YORK, March 4, 2015 (GLOBE NEWSWIRE) -- 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 .
Robert S. Willoughby Pomerantz LLP
