• A lawsuit, filed on behalf of International Business Machines (IBM) shareholders, claims the tech giant intentionally misidentified revenues from legacy mainframe sales as coming from more cutting-edge products, including cloud.
• Originally filed in 2022 and withdrawn later in the year, the refiled suit alleges a number of executives, including several former CEO Ginni Rometty and the current chief executive officer Arvind Krishna, misled investors to believe that sales of its cloud, analytics, mobile, social, and security products (CAMSS) were making big gains.
A class action lawsuit filed against IBM in January 2023 on behalf of the company’s shareholders accuses 13 executives, including former chief executive Ginni Rometty and current CEO Arvind Krishna, of inflating cloud and other modern service revenue numbers by including mainframe figures in with cloud, analytics, mobile, social, and security products. Both the company and the individual executives were named in the suit. The suit posits the executives wanted to demonstrate momentum for more modern product areas in which the company had invested heavily in recent years, including its Watson AI platform. The suit seeks damages for investors who purchased IBM stock between January 18, 2018 and October 16, 2018.Continue reading “IBM Sued for Misleading Investors on Cloud Revenues”
You must be logged in to post a comment.