International Business Machines Corporation
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired International Business Machines Corporation (“IBM” or the “Company”) (NYSE: IBM) securities between January 18, 2018 through October 16, 2018 (the “Class Period”). Investors have until March 14, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
IBM offers application, technology consulting and support, process design and operations, cloud, digital workplace, and network services.
On October 16, 2018, IBM issued a press release announcing its preliminary results for 3Q2018.
The Company reported revenue of $18.8 billion, down 2 percent and slowing growth in Strategic
Imperatives. On this news, the price of IBM shares declined by $10.57 per share, or approximately 7.63%, from $138.61 per share to close at $128.04 on October 17, 2018.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Strategic Imperatives Revenue growth, CAMSS (the distinct components of “Cloud,” “Analytics,” “Mobile,” “Security,” and “Social”) and CAMSS components’ revenue growth, and the Company’s Segments’ revenue growth were artificially inflated as a result of the wrongful reclassification/misclassification of revenues from non-strategic to strategic to make those revenues eligible for treatment as Strategic Imperatives Revenue; and (ii) IBM was materially less successful in growing its Strategic Imperative business, reporting materially higher growth than it actually achieved only by wrongfully reclassifying and misclassifying revenue from non-strategic to strategic thereby reporting publicly materially false Strategic Imperative Revenue.