IBM Says They Are Under Investigation By The SEC, Shares Fall
An SEC filing done by the International Business Machines (IBM) Corporation during the end of September this year was enough to make the company’s shares drop as much as 4.4 percent to $137.33 when it was revealed that the global tech company was under investigation for its accounting practices.Advertisement
IBM says it was August 2015 when the company learned they were a subject of an investigation being conducted by the U.S. Securities and Exchange Commission (SEC). Specifically, the SEC is looking into the company’s accounting books as it relates to its revenue recognition for a number of its transactions that took place in the U.S. as well as in the U.K. and Ireland. Moreover, IBM says that they are already cooperating with the SEC in the matter.
Meanwhile, earlier in March, IBM says they were also at the center of a putative class action litigation as it was alleged that the company, along with three of its officers, were in violation of Sections 20 (a) and 10 (b) of the Securities Exchange Act of 1934 and Rule 10b-5. And during May 2015, IBM was also the center of a related putative class action when the company was accused of violating the Employee Retirement Income Security Act.
Recently, IBM had announced that it plans to acquire The Weather Company’s B2B, mobile and cloud-based web properties. These include websites WSI, weather.com, Weather Underground as well as The Weather Company brand. However, IBM also clarified that the agreement does not include the acquisition of The Weather Company’s TV segment, The Weather Channel.
Following the recent announcement, IBM’s stock is now up by 2.15 percent to $140.83.