Armonk, New York-based IBM Corp. has agreed to pay $20 million to settle a shareholders’ lawsuit that claimed the technology company misled the public about employee stock-option expenses in 2005. The settlement comes a year after the Securities and Exchange Commission determined that IBM’s conduct had violated federal law. Interestingly, the SEC stopped short of finding that fraud had been committed, and it imposed no fine on IBM. The shareholder lawsuit and the SEC investigation looked into whether IBM manipulated expectations for its first-quarter earnings announcement in 2005. It surely did look like fraud but maybe the SEC saw the facts differently.
Source: Insurance Journal
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