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IBM deliberately misclassified mainframe sales to enrich execs, lawsuit claims
The Register ^ | 7 Apr 2022 | Thomas Claburne

Posted on 04/06/2022 5:25:18 PM PDT by anthropocene_x

IBM has been sued by investors who claim the company under former CEO Ginni Rometty propped up its stock price and deceived shareholders by misclassifying revenues from its non-strategic mainframe business – and moving said sales to its strategic business segments in violation of securities regulations.

IBM "improperly and in violation of Generally Accepted Accounting Principles ('GAAP') embarked on a fraudulent scheme to shift billions of dollars in revenues from its mainframe line of business to its Strategic Imperatives and CAMSS line of business," the complaint reads.

According to documents and interviews with former IBM employees, the case stems from years of allegedly unlawful and unethical business practices that served to inflate executive bonuses through revenue shifting, discriminatory layoffs, and the manipulation of sales commission, and other means.

This misbehavior was rewarded by IBM's decision to tie executive compensation to sales of technologies deemed crucial to the US giant's future: Cloud, Analytics, Mobile, Social media, and Security, collectively referred to as CAMSS products. By transferring revenues from its systems division to CAMSS initiatives, IBM's leaders would appear to be succeeding in important growth sectors and take home larger bonuses.

(Excerpt) Read more at theregister.com ...


TOPICS: Business/Economy; Chit/Chat; Miscellaneous
KEYWORDS: corporations; economy; globalization

1 posted on 04/06/2022 5:25:18 PM PDT by anthropocene_x
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To: anthropocene_x

I think this is highly unlikely.


2 posted on 04/06/2022 5:28:07 PM PDT by Zathras
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To: Zathras

How so?


3 posted on 04/06/2022 5:29:26 PM PDT by SmokingJoe
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To: anthropocene_x
Would not be surprised if this was true.

...the company had a period between 2013 and 2018 when it experienced an astonishing 22 straight quarters of negative revenue growth.

https://techcrunch.com/2021/04/20/ibm-breaks-latest-revenue-losing-streak-as-cloud-revenue-shows-modest-growth/

4 posted on 04/06/2022 5:37:33 PM PDT by T.B. Yoits
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To: Zathras

“I think this is highly unlikely.”

I don’t. As someone who has over 40+ years in the computer business and competed with IBM in the early years of migration away from mainframes, I have seen them pull some slick moves. They did this all under the “blue suite,” professional image. They were good at it.


5 posted on 04/06/2022 5:39:44 PM PDT by icclearly
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To: anthropocene_x

It was just a computer glitch.


6 posted on 04/06/2022 5:40:02 PM PDT by dblshot
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To: icclearly

I miss my 308x series


7 posted on 04/06/2022 5:42:54 PM PDT by SaveFerris (The Lord, The Christ and The Messiah: Jesus Christ of Nazareth - http://www.BiblicalJesusChrist.Com/)
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To: T.B. Yoits

My SIL works for a company that IBM just bought for their cloud skills.


8 posted on 04/06/2022 5:45:10 PM PDT by Prince of Space ( Let’s go, Brandon! )
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To: Prince of Space
I work with a company supported by an IBM service contract and question their drive to put everything in the cloud, consequences be damned.
9 posted on 04/06/2022 5:47:51 PM PDT by T.B. Yoits
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To: anthropocene_x

Carly Fiorina and Elizabeth Holmes did not respond to questions about Ginny Rometty’s questionable business ethics and performance as a tech CEO ...


10 posted on 04/06/2022 5:49:05 PM PDT by SecondAmendment (This just proves my latest theory ... LEFTISTS RUIN EVERYTHING !!!)
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To: icclearly

their Mature Product Line...

the title says mainframes but do they even still make iron?


11 posted on 04/06/2022 6:08:03 PM PDT by Chode (there is no fall back position, there's no rally point, there is no LZ... we're on our own. #FJB)
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To: SecondAmendment

Neither did Marissa Meyer.


12 posted on 04/06/2022 6:25:26 PM PDT by libh8er
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To: libh8er

Mayer


13 posted on 04/06/2022 6:26:29 PM PDT by libh8er
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To: libh8er

I looked her up but don’t get the connection?

https://www.marissameyer.com/about-marissa-meyer/


14 posted on 04/06/2022 6:29:40 PM PDT by nascarnation (Let's Go Brandon!)
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To: anthropocene_x

Move one of the S’s to the front of CAMSS and you get SCAMS.


15 posted on 04/06/2022 6:30:36 PM PDT by Busywhiskers ("Once you have wrestled, everything else in life is easy" -Dan Gable)
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To: nascarnation

I spelled it wrong. See post #13


16 posted on 04/06/2022 6:55:53 PM PDT by libh8er
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To: anthropocene_x

If I recall, employee bonuses were based on their division’s performance. If this is true then those employees in Mainframe divisions may have lost out.


17 posted on 04/06/2022 7:46:35 PM PDT by LVS1
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To: SecondAmendment
If anyone would know about "questionable business ethics", Carly would head the list.
18 posted on 04/07/2022 4:33:38 AM PDT by Roccus (First we beat the Nazis........Then we defeated the Soviets....... Now, we are them.)
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To: anthropocene_x

Check out the specs on this IBM mainframe.
The cpu has 256 cores and there is 40 terabytes of memory <—
I has a i5 cpu and 32gbs of ram memory.....

Tried to Break a Million Dollar Computer
https://www.youtube.com/watch?v=ZDtaanCENbc


19 posted on 04/08/2022 12:52:29 AM PDT by minnesota_bound (Need more money to buy gas)
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