NEW YORK--(BUSINESS WIRE)--Zamansky LLC announces that it has commenced an investigation of International Business Machine Inc.’s (“IBM”) (NYSE:IBM) 401(k)Plus Plan (the “Plan”) for possible violations of the federal Employee Retirement Income Security Act (“ERISA”). ERISA imposes fiduciary duties to prudently manage and invest plan assets. These duties were potentially violated by IBM’s continued offering of its company stock while it allegedly knew that the stock price was artificially inflated.
On April 1, 2015, a class action lawsuit was filed against IBM in the U.S. District Court, Southern District of New York, No. 15 CV 2492, alleging securities fraud. The Complaint alleges that from January 22, through October 17, 2014, IBM over-valued and made material misrepresentations to investors about its Microelectronics business which designs and produces microchips. IBM sought to sell its microelectronics which it certified was worth $2.4 billion when it knew that its Microelectronics business had lost $700 million the year before, expected losses in 2014 and was not worth anywhere near this amount.
On October 20, 2014, IBM announced that it was taking a $4.7 billion charge and write-off of the Microelectronics, in connection with its sale. Following this news, IBM’s stock price fell by over $20 per share. The Complaint alleges that IBM’s management knew that its financial statements over-stated the value of the Microelectronics business, and intentionally sought to hide IBM’s struggles to adapt to the changing competitive marketplace from investors.
According to employee stock fraud attorney, Jake Zamansky, IBM’s existing and former employees who purchased and held company stock through the 401(k) Plus Plan since at least January 22, 2014, have suffered losses to their retirement savings. The allegations about fraud by IBM’s management raise serious issues over its credibility to lead the company forward. The allegations also raise serious issues for IBM 401(k) participants over the prudent monitoring and oversight of the Plan under ERISA for artificial inflation of the stock price, he states.
What IBM Employees or Former Employees Can Do
If you are an existing or former IBM employee who purchased or held IBM stock through the 401(k) Plus Plan, please contact our firm for an evaluation of your rights. You can contact Jake Zamansky by telephone at (212) 742-1414 or by email at firstname.lastname@example.org.
About Zamansky LLC
Zamansky LLC is a leading stock law firm specializing in securities fraud, ERISA and employment class actions. We are investment fraud attorneys who represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover investment losses.
To learn more about Zamansky LLC, please visit our website, http://www.zamansky.com.