IBM Faces Fraud Probe After 25% Stock Drop on Q2 Miss
Updated
Updated · PR Newswire · Jul 21
IBM Faces Fraud Probe After 25% Stock Drop on Q2 Miss
1 articles · Updated · PR Newswire · Jul 21
Summary
Bleichmar Fonti & Auld LLP said it is investigating IBM for potential securities fraud after the company’s shares plunged more than 25% on July 14.
IBM’s second-quarter results triggered the selloff after the company cited a shortfall in IBM Z performance and said numerous large deals failed to close on the expected timeline.
The law firm is examining whether IBM misled investors about both the pace of winning new business and the strength of its IBM Z outlook before the earnings release.
The drop erased more than $75 a share in intraday trading, turning the weak quarter into a potential shareholder litigation issue for the hybrid cloud and AI company.