KO&L AND LABATON SUCHAROW OBTAIN PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT WITH IBM
On May 30, 2008, the Court presiding over this class action issued an Order preliminarily approving a proposed $20 million settlement with IBM concerning alleged misrepresentations and omissions in IBM's April 5, 2005 announcement that it would begin stock option expensing in the first quarter of 2005. Specifically, plaintiffs alleged that IBM misled investors as to its expected financial results and the anticipated size of its stock option expense for the quarter. IBM disputed that it made any misrepresentations to investors and denies all allegations of wrongdoing. The Court has scheduled a Fairness Hearing on September 9, 2008 at 3:00 p.m. to consider final approval of the proposed settlement. At or after the Fairness Hearing, the Court will also consider whether to approve the proposed Plan of Allocation of the net settlement proceeds and a request by plaintiffs' counsel and plaintiffs for an award of fees and expenses. The details of the Settlement are set forth in the Notice of Proposed Settlement of Class Action, Application for Attorneys' Fees and Expenses and Fairness Hearing. In order to share in the settlement proceeds, you must submit a Proof of Claim Form so that it is received by the Claims Administrator no later than August 26, 2008.
