INTERNATIONAL BUSINESS MACHINES CORPORATION (NYSE:IBM) SHAREHOLDER CLASS ACTION ALERT: Bernstein Liebhard LLP reminds investors of the deadline to file a motion as lead plaintiff in a securities class action lawsuit against International Business Machines Corporation (NYSE: IBM)
NEW YORK, May 10, 2022 (GLOBE NEWSWIRE) — Bernstein Liebhard LLP, a nationally recognized investor rights law firm, reminds investors of the deadline to file a motion as lead plaintiff in connection with ‘a securities class action lawsuit filed on behalf of the investors who purchased or acquired the securities of International Business Machines Corporation (“IBM” or the “Company”) IBM Between April 4, 2017 and October 20, 2021, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the Southern District of New York and alleges violations of the Securities Exchange Act of 1934.
Plaintiff alleges that Defendants fraudulently transferred billions of dollars in revenue from IBM’s mainframe business to its Strategic Imperatives and Cloud, Analytics, Mobile, Security, and Social (“CAMSS”) business. Defendants have thus supported the revenues of these lines, increased their long-term incentive compensation and appeased the investment community while waiting for the company’s new business model to materialize.
Plaintiff alleges that IBM partially disclosed evidence of this fraud after market close on October 16, 2018, when defendants disclosed a shortfall and disappointing growth in Q3 2018 associated with the Strategic Imperatives and company’s CAMSS, specifically its Cloud business line. . IBM stock price fell about $11 per share at the close of trading on October 17, 2018.
On October 20, 2021, after market close, the Company issued a press release announcing its 3Q2021 results. The company reported total revenue for the quarter of $17.62 billion, a shortfall of $191.84 million according to analysts’ estimates. The main culprit was the Cloud & Cognitive Software segment, which had revenue of $5.69 billion, a shortfall of around $80 million at analyst estimates of $5.77 billion. More than 42% of the $191 million revenue shortfall was attributable to the company’s Cloud and Cognitive Software segment – where most of the strategic revenue generated by the fraudulent scheme and unwarranted reclassification of revenue from non-strategic to strategic has historically gone. .
On this news, IBM’s common stock price fell more than 9%, closing at $121.07 per share on October 21, 2021.
If you wish to act as the main plaintiff, you must apply to the court no later than June 6, 2022. A lead plaintiff is a representative party acting on behalf of the other class members to direct the litigation. Your ability to participate in any recovery does not require you to serve as the primary plaintiff. If you choose to do nothing, you can remain an absent member of the group.
If you purchased IBM securities and/or wish to discuss your legal rights and options please visit International Business Machines Corporation Shareholder Class Action Lawsuit or contact Pierre Allocco at (212) 951-2030 or pallocco@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the firm has been retained by some of the nation’s largest public and private pension funds to oversee their assets and bring lawsuits on their behalf. As a result of its success in hundreds of lawsuits and class actions, the firm has been named to the National Law Journal’s “List of Plaintiffs” thirteen times and listed in The Legal 500 for ten consecutive years.
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Contact information:
Pierre Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com
