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IBM Hit With Investor Suit Over Shedding Hardware Business

Law360, New York (April 2, 2015, 9:01 PM EDT) -- IBM Corp. was sued Wednesday by a putative class of investors over a stock drop they say was caused by miscues in the sale of the company's ailing $2.4 billion microchip business.

The investors say that when the company struck a deal to sell the division, the truth came out about its financial state, and the company took a writedown much larger than the division's worth, causing the $182 stock to decline by $13 per share, or 7 percent.

“As a result of defendants' materially false...
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