Labaton Sucharow represents the lead plaintiffs in In re International Business Machines Corp. Securities Litigation, a securities fraud class action pending before the Honorable Alvin K. Hellerstein in the U.S. District Court for the Southern District of New York.
Lead plaintiffs allege in their Consolidated Amended Complaint that International Business Machines Corp. ("IBM"), and its Chief Financial Officer, Mark Loughridge, made material misrepresentations and omissions concerning IBM's expected 2005 first quarter earnings, IBM's expected 2005 first quarter operational performance, and the financial impact of IBM's decision to begin expensing stock options on its 2005 first quarter financial statements. When the impact of the Company's operational problems was subsequently disclosed on April 14, 2005, the Company's stock dropped almost $7 per share, resulting in a loss of over $10 billion in IBM's market capitalization.
On September 20, 2006, the Court denied IBM's motion to dismiss and on March 12, 2007, granted Plaintiffs' motion to certify the case as a class action.
The parties conducted a two-day mediation in February 2008, at the end of which they reached an agreement-in-principle to settle the action for $20,000,000, plus interest. The parties then negotiated the terms of settlement documents and on May 30, 2008, the Court entered an order preliminarily approving the settlement.
On September 9, 2008, the Court granted final approval of the settlement.