June 2, 2008
Labaton Sucharow LLP Settles Securities Class Action Against IBM for $20 Million
NEW YORK (June 2, 2008) - Labaton Sucharow LLP, Klafter & Olsen LLP and IBM announce that they have received preliminary approval for an agreement to settle the securities class action titled In re IBM Securities Litigation, No. 1:05-cv-6279 (AKH) (S.D.N.Y.), for $20 million in cash.
The settlement is subject to final Court approval. The settlement will resolve claims brought on behalf of the class of persons who purchased IBM’s common stock between April 5, 2005 and April 14, 2005.
In this litigation, the plaintiffs alleged that members of the class were damaged by misrepresentations and omissions in IBM’s April 5, 2005 announcement that it would begin stock option expensing in the first quarter of 2005. Specifically, the plaintiffs alleged that IBM misled investors as to its expected financial results and the anticipated size of its stock option expense for the quarter. IBM disputes that it made any misrepresentations to investors, and denies all allegations of wrongdoing.
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