Providing misleading financial guidance to analysts in 2005, as the SEC contended IBM did, never turned into anything as the two sides settled the dispute. If this were a playground hoops game, one could call it a 'no harm, no foul' moment.
IBM got off with a settlement that does not require them to admit wrongdoing or pay a fine. "The facts here are particularly troubling because the disclosure decision was driven, in part, by management's perception of how the news would be interpreted by analysts," Friestad said. IBM's actions violated reporting provisions of federal securities laws, the SEC also said. But after over two years, the best the SEC could do was to back off after eliciting a promise from IBM not to violate disclosure laws again. Maybe the SEC plays by "no autopsy, no foul" rules these days. It's too bad the SEC got to play with taxpayer money for the investigation.IBM Skates On SEC Charges
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