NEW YORK, May 10, 2022 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors who purchased or acquired the securities of International Business Machines Corporation (“IBM” or the “Company”) (NYSE: 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 shifted billions of dollars in revenues from IBM’s mainframe line of business to its Strategic Imperatives and Cloud, Analytics, Mobile, Security, and Social (“CAMSS”) line of business. Defendants thus propped up revenues for these lines, increased their long-term incentive compensation, and appeased the investing community while waiting for the Company’s new business model to come to fruition.
Plaintiff alleges that IBM partially disclosed evidence of this fraud after the close of the market on October 16, 2018, when Defendants revealed a shortfall in revenue and disappointing 3Q2018 growth associated with the Company’s Strategic Imperatives and CAMSS lines of business, particularly its Cloud business line. IBM’s stock price fell approximately $11 per share by the close of trading on October 17, 2018.
On October 20, 2021, after the close of the market, the Company issued a press release announcing its 3Q2021 results. The Company announced total revenues for the quarter of $17.62 billion, a shortfall of $191.84 million based on analyst estimates. The main culprit was the Cloud & Cognitive Software segment, which had revenues of $5.69 billion, a shortfall of approximately $80 million based on analyst estimates of $5.77 billion. Over 42% of the $191 million shortfall was attributable to the Company’s Cloud & Cognitive Software segment – where most of the strategic revenue produced by the fraudulent scheme and wrongful reclassification of revenues from non-strategic to strategic historically went.
On this news, the price of IBM common stock fell more than 9%, closing at $121.07 per share on October 21, 2021.
If you wish to serve as lead plaintiff, you must move the Court no later than June 6, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased IBM securities, and/or would like to discuss your legal rights and options please visit International Business Machines Corporation Shareholder Class Action Lawsuit or contact Peter 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 largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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Contact Information:
Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com
