SEC Investigates IBM
IBM announced on Tuesday that the U.S. Securities and Exchange Commission is conducting an investigation into how the company recognized revenue on “certain transactions.” While little else is known at this time, IBM stocks fell 3% after the announcement and some industry experts predict an even larger drop as the investigation continues.
According to a spokesman for IBM, “[IBM] has a rigorous and disciplined process for the preparation of its financial statements and the reporting of revenue. We are confident that the results and information we report have been appropriate and consistent with GAAP.”
Further information is currently unavailable from both IBM and the SEC, but according to the SEC’s website, www.sec.gov, violations that commonly result in investigations from the Securities and Exchange Commission include:
- Misrepresentation or omission of important information about securities
- Manipulating the market prices of securities
- Stealing customers’ funds or securities
- Violating broker-dealers’ responsibility to treat customers fairly
- Insider trading (violating a trust relationship by trading on material, non-public information about a security)
- Selling unregistered securities
If you believe you have been a victim of any of these practices, please contact Colling Gilbert Wright & Carter today to schedule a free consultation and learn more about your options.