IBM Settles SEC Charges Over Misleading Chart

Law360, New York (June 5, 2007, 12:00 AM EDT) -- International Business Machines Corp. has settled charges brought by the U.S. Securities and Exchange Commission that stemmed from what prosecutors call a “misleading chart” that was presented by IBM in an April 2005 conference call with analysts and was also included in a regulatory filing.

The chart misrepresented the effect that IBM's decision to expense employee stock options would have on the company's financial results for the first quarter of 2005, and the fiscal year 2005, according to the SEC.

IBM will not have to pay...
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