IBM agrees to cease and desist order – No fine or monetary penalty imposed
ARMONK, N.Y.– LAWFUEL – The Law Newswire – IBM (NYSE:IBM) today announced that the company has reached an agreement with the U.S. Securities and Exchange Commission (SEC) to resolve the previously disclosed investigation by the SEC concerning the company’s disclosures relating to its first-quarter 2005 earnings and expensing of equity compensation. IBM initially disclosed this investigation in a SEC Form 8-K, dated June 27, 2005.
In connection with the agreement, IBM has consented to entry of an administrative order by the SEC directing that IBM cease and desist from committing or causing any violations of certain of the reporting provisions of the federal securities laws and related SEC rules. IBM consented to this order without admitting or denying any wrongdoing. The SEC’s order contains no finding of securities fraud or violation of any antifraud provision of the federal securities laws and related SEC rules. No monetary penalty or fine was imposed in connection with the resolution of this matter.