According to the law firm press release, International Business Machines Corporation ("IBM") is a multinational technology and consulting corporation that manufactures and markets computer hardware and software products and provides its customers with various information technology related services.

The Complaint alleges that during the Class Period, Defendants issued false and misleading statements and/or omitted adverse facts regarding the true value of IBM’s micro-chip manufacturing operations, known as its Microelectronics business. Specifically, according to the Complaint, Defendants failed to record an impairment in the value of the Company’s Microelectronics business in conformity with applicable accounting standards, which materially inflated IBM’s earnings during the Class Period and rendered the Company’s 2014 earnings guidance materially false and misleading. Defendants’ false and misleading statements and/or omissions during the Class Period caused IBM’s common stock to trade at artificially inflated prices, reaching a high of over $196 per share.

Then, on October 20, 2014, IBM issued a press release announcing that Globalfoundries had agreed to “acquire” its Microelectronics business, including intellectual property rights, for a payment of $1.5 billion from IBM to Globalfoundries, and that IBM would be taking a $4.7 billion charge to earnings on the Microelectronics unit. The same day, IBM announced disappointing financial results for its 2014 third quarter, the period ended September 30, 2014, including the $4.7 billion charge, which included an impairment to reflect fair value less estimated costs to sell the Microelectronics business and other estimated costs related to the transaction, including cash consideration expected to be transferred to Globalfoundries of approximately $1.5 billion. Defendants also updated IBM’s 2014 guidance, stating that rather than the Company’s earlier guidance of $18 per share, operating earnings per share for 2014 would decline between 2% and 4% compared to $16.64 per share in 2013. On this news, the price of IBM common stock fell more than $12 per share, from $182.05 per share on October 17, 2014 to close at $169.10 per share on October 20, 2014.

On September 7, 2016, the Court issued an Order granting Defendants' motion to dismiss.