IBM Workers Bring Class Action Alleging Company Artificially Inflated Stock Value

IBM Corp. employees May 15 filed a class action accusing the technology company of losing millions of dollars in their 401(k) accounts by keeping IBM stock in the plan (Jander v. Int’l Bus. Machs. Corp., S.D.N.Y., 1:15-cv-03781, complaint filed 5/15/15).

The workers accused IBM executives of artificially inflating the value of company stock by issuing misleading financial statements and giving false information about the health of the company’s microelectronics division, which they say was “hemorrhaging money.” When IBM finally “came clean” about the true value of its microelectronics business in 2014—which allegedly included a $700 million loss ...