Investor Lawsuit Blames NSA For $12B Loss In IBM Value

Jah-Wren Ryel writes "IBM Corp has been sued by the Louisiana Sheriffs' Pension & Relief Fund which accused it of concealing how its ties to what became a major U.S. spying scandal reduced business in China and ultimately caused its market value to plunge more than $12 billion." While anyone can file a lawsuit, being sued by an institutional investor is a little different than being sued by John Q. Disgruntled.

Comments

I was wondering

[ganjadude]

when this would happen. You just had to know that someone would go after them for this. I wonder how it will hold up in court. The bigger question I have is what else will be found during discovery

Re:I was wondering

[DavidClarkeHR]

when this would happen. You just had to know that someone would go after them for this. I wonder how it will hold up in court. The bigger question I have is what else will be found during discovery

Well, they'll settle out of court if discovery is an option, and ... IBM isn't just someone. They're looking for ways to mitigate their (other) problems.

No, this is distinctly different than, say ... Facebook going after them. Or Microsoft. Or Apple. Or Samsung.When a company that is already 'losing ground' looks to blame others for their problems, that's a different scenario than a company that isn't threatened pursuing the same lawsuit. The outcome may be the same, which may be all that matters (to some, in theory), but the reasons are completely different. You wouldn't say that a police officer breaking a window to enter a home is the same as a criminal breaking a window to enter your home ... one is looking to profit, the other is looking to protect (again, in theory).

Re:I was wondering

[cold fjord]

I expect that if lawsuits become a problem in this regard that a previous solution for a similar problem will be reused. Actually, that very solution may apply in this case in some regards.

Obama administration backs telecom immunity

For the sake of national security

[Foxhoundz]

I feel like the NSA and the rest of the intelligence apparatuses have gotten to a point where the security of this nation trumps any man made law. If this nation is of and for the people, who the hell is the NSA working for?

NSA/CIA Chilling effects, billion lost.

[hackus]

I can't see how anyone is surprised here.

Would you purchase anything made by USA companies now if you want your data secure and safe?

I gave up starting a cloud storage busines for companies hosting apps/storage because there is no way to claim you have a secure and safe storage system when the goon squad can come in with grenades and machine guns and blow the place up looking for any sort of activity they feel is not "legal".

Secondly, the whole idea that companies outsource I.T. operations to reduce cost can't be made any more with any western institution. The result?

About 40 people I was going to hire to start this business won't see the light of day.

This is not just me either. In the investment circles I follow lots of people are leaving or simply shelving plans for any sort of real I.T. services expansion in the USA.

Those companies that are left and do hosting, Amazon, Google, Microsoft are doing so only because they already share all of their clients data with the NSA/CIA and are permitted to exist as a result.

The whoel thing is fascist and there is no competition under those sorts of conditions.

-Hack

Re:Capitalism Democracy?

[AJWM]

They don't always shut down the company.

Sometimes they just arrest the COB/CEO. You don't really imagine there was zero connection between Joe Nacchio of Qwest refusing to give NSA customer records without a court order (this back in 2001) and his being arrested and jailed for insider trading, do you?

(He may have engaged in some questionable trades but nothing that other corporate execs have done without getting hit with such severe penalties.)

Re:Capitalism Democracy?

[Xicor]

you clearly dont read the monthly posts from google telling everyone how many requests theyve been asked for and how many theyve given. in ALL instances, where there was a warrant issued (by a secret court with no oversight), google gave up information on people.

I hope Cisco, Microsoft, Google got sued as well

[Taco Cowboy]

This could get very interesting

I will be TRULY INTERESTING when institutional investors not only sue IBM, but also sue Cisco, Microsoft, Google and all other companies associated with NSA.

We the people, as individuals, have no power over that arrogant NSA - and those corporations, especially Cisco and Microsoft which had been in extra-ordinary friendly term with NSA, must face the same music IBM is facing, for what they have done.