SEC Settles With IBM for Misleading Statements Regarding Stock Option Expenses


Washington, D.C., June 5, 2007 – The Securities and Exchange Commission announced today a settled enforcement action against International Business Machines Corporation for making materially misleading statements in a chart concerning the impact that the company’s decision to expense employee stock options would have on its first quarter 2005 (1Q05) and fiscal year 2005 (FY05) financial results. The misleading chart caused analysts to lower their earnings per share (EPS) estimates for the company.

For more see the SEC’s Press Release.


One Response

  1. A hangover from the 1990s hi-tech boom, I wonder if stock options expensing problems will ever stop spooking Wall Street.

    This is a primary area for white collar crime. The opportunities to influence earnings reports are substantial. Still. Unfortunately.

    –Jack Payne

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