Hagens Berman, a national shareholder rights law firm, announced an investigation into International Business Machines Corp. over potential violations of U.S. securities laws. The investigation follows CEO Arvind Krishna’s July 14, 2026, preview of the company’s second-quarter 2026 financial results.
IBM’s announcement of a significant shortfall in Z mainframe performance sent its shares down 25% in one day. The decline erased more than $68 billion in market capitalization.
The firm is examining the contrast between management’s April 2026 assurances of “5-plus percent” revenue growth and a “record start” for the new z17 mainframe, and the later disclosure of a revenue shortfall and numerous large deals that failed to close. The investigation will scrutinize the propriety of IBM’s prior statements to investors.
The investigation comes amid other recent company announcements, including the election of a new board member.