All New Cases & Investigations

IBM Class Action Investigation

U.S. Securities Litigation

Leadership Deadline: Upcoming

IBM Investigation Summary

Company International Business Machines Corporation (NYSE:IBM)
Eligible Securities All IBM Securities
Investigation Overview Securities fraud relating to IBM’s misrepresentations about the pace of securing new business deals and the strength of its IBM Z product outlook.
Trigger Event July 14, 2026 – IBM announced that it “faltered” and that “numerous large deals failed to close”.
IBM Stock Impact July 14, 2026 – 25% Stock Drop

IBM Investigation Overview

BFA is investigating whether IBM committed securities fraud by making false and misleading statements to investors regarding its pace of securing new business deals. Investors may be able to file a class action to potentially recover losses.

If you lost money on your IBM investment, you are encouraged to submit your information using the form on this page.  You may also email adam@bfalaw.com or call 212.789.3619.

Why is IBM being investigated for Securities Fraud?

IBM is being investigated for securities fraud following a significant stock drop. The decline in IBM’s stock price caused significant losses to investors.

IBM is a global technology and consulting company that focuses on hybrid cloud and artificial intelligence. IBM uses IBM Z to deliver enhanced AI acceleration through multi-model AI capabilities, low unit cost architecture at scale for workloads that require end-to-end encryption, continued availability, and ultra-high throughput.

BFA is investigating whether IBM misled investors about its pace of securing large deals and the strength of its IBM Z outlook.

Why did IBM’s Stock Drop?

On July 14, 2026, IBM released its 2026 Q2 financial results. IBM announced a disappointing quarter that it attributed to “a shortfall in our Z performance and the associated software stack, primarily in Transaction Processing.” IBM also revealed that it had “faltered,” and “did not adapt and move quickly enough” so that “numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall.”

This news caused the price of IBM stock to decline over $75 in intraday trading on July 14, 2026, or over 25%.

IBM ($IBM) Stock Chart

IBM Stock Drop

Image Caption: NYSE online chart showing IBM’s stock drop following the July 14, 2026 news.

How Do I Submit My Information?

If you lost money when IBM securities dropped in price, you are encouraged to submit your information using the form on this page to speak with an attorney about your rights.

You can also contact:

Adam McCall
adam@bfalaw.com
212.789.3619

All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of the class action lawsuit. The firm will seek court approval for any potential fees and expenses.

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS.

BFA attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360, and “SuperLawyers” by Thomson Reuters.

BFA’s notable successes include a recovery of over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

Attorney advertising. Past results do not guarantee future outcomes.

Frequently Asked Questions (FAQs)

The investigation is about whether IBM misled investors regarding its the pace of securing new business deals and the strength of its IBM Z product outlook.

Contact BFA at adam@bfalaw.com or through the form on this page. There is no cost to you. We will review your information and determine whether you may have potential legal claims.

All IBM securities are being analyzed as part of the investigation. If you have questions about a particular investment, submit your information to discuss your options. The types of securities that may ultimately be included in any future lawsuit have not yet been determined.

No. You may be eligible to participate whether you sold or still hold your IBM securities. What matters is that you purchased your securities during the class period and were harmed by the alleged misconduct, not whether you still own them.

No. If you’ve experienced a loss on your IBM investment, we recommend submitting your information for review.

See additional FAQs here.

References