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Shareholder ends lawsuit against IBM over China risks, NSA scandal

06
May
2014

An IBM Corp shareholder has voluntarily ended a lawsuit accusing the company of concealing how its cooperation with a National Security Agency spying program cost it business in China and led to a nearly $13 billion plunge in the companys market value. The dismissal follows an extensive additional investigation into the matters alleged, which included investigations conducted in the United States and China, as well as information obtained through discussions with defense counsel, John Browne, a lawyer for lead plaintiff Louisiana Sheriffs Pension Relief Fund in Baton Rouge, said in a letter made public on Monday. IBM shares fell 6.4 percent last October 17, wiping out $12.9 billion of market value, a day after the company posted disappointing quarterly revenue, including drops in China of 22 percent in sales and 40 percent in hardware sales. According to the complaint, IBM lobbied Congress to pass a law letting it share the personal data of its customers in China with the NSA to help protect its intellectual property rights.

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