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International Business Machines Corporation controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

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  1. 2021

    IBM sues GlobalFoundries over chip-process technology agreement

    Lawsuit filed

    IBM sued GlobalFoundries, alleging that it failed to deliver the agreed 10nm or replacement 7nm process technology. GlobalFoundries disputed IBM’s allegations and argued that the suit sought an unjustified $2.5 billion payment.

    Source excerpt

    • IBM has sued GlobalFoundries for its failure to deliver a function 10nm node or the 7nm node that was supposed to replace it.
    • According to the filings, IBM alleges that GlobalFoundries both misrepresented their capabilities and unilaterally changed the deal, doing IBM massive damage.
    • This month, IBM filed a civil lawsuit against GlobalFoundries, a company that it helped to found. The lawsuit alleges that GlobalFoundries breached a contract by not producing promised high-performance microchips.
  2. 2021

    Jury returns $11.1 million verdict in former IBM manager's case

    Ruling

    A Seattle jury found that former IBM sales manager Scott Kingston proved his claims for wrongful termination under Washington law and related public policies concerning race discrimination and withheld wages. The verdict awarded $11.1 million in damages.

    Source excerpt

    • Their included damages for past economic loss, future economic loss, unpaid sales commissions for the first quarter of 2018, and emotional harm.$11.1 million verdict
    • The Seattle jury found that Mr. Kingston proved his claims for wrongful termination violated the Washington Law Against Discrimination, as well as public policies regarding race discrimination and the withholding of wages of Jerome Beard.
  3. 2021

    IBM sues Rakuten over e-commerce patents

    Lawsuit filed

    IBM filed a complaint against Rakuten and related entities in the District of Delaware, alleging infringement of IBM patents related to e-commerce. IBM sought declaratory and injunctive relief and damages, costs, and fees; the allegations are not presented as a court finding.

    Source excerpt

    • On Monday, International Business Machines Corporation (IBM) filed a complaint in the District of Delaware against Rakuten Inc., Rakuten USA Inc., Rakuten Commerce LLC, and Ebates Inc. doing business as Rakuten for patent infringement, alleging that the defendants infringed its patents related to e-commerce.
    • IBM seeks declaratory and injunctive relief and an award for damages, costs, and fees.
  4. 2021

    Chewy files patent noninfringement action against IBM

    Lawsuit filed

    Chewy filed a complaint against IBM in the Southern District of New York seeking a declaratory judgment that it did not infringe the patents IBM asserted against it.

    Source excerpt

    • On Monday, Chewy, Inc., an online retailer for pet products, filed a complaint in the Southern District of New York against International Business Machines Corporation (IBM) asking the court for a declaratory judgment of noninfringement for the patents-in-suit.
  5. 2020

    IBM sues former executive over non-compete and trade secrets

    Lawsuit filed

    In a controversy involving IBM, the company sued its former executive Rodrigo Kede Lima, accusing him of violating a non-compete agreement and misusing trade secrets. Lima disputed IBM's claims. The dispute centered on the enforcement of the non-compete agreement and the alleged misuse of confidential business information. No further details on the outcome of the lawsuit were provided in the source.

    IBM sued former executive Rodrigo Kede Lima, accusing him of violating a non-compete agreement and misusing trade secrets; Lima disputed IBM's claims.

    Source excerpt

    • 根据 6 月 15 日在美国怀特普莱恩斯美国地方法院提起的诉讼,这家 Armonk 公司指控 Rodrigo Kede Lima 违反了不竞争协议并滥用了商业秘密,并要求归还近 130 万美元的股票期权。
    • 利马在一份法院声明中回应说,IBM 没有任何合法利益阻止他接受拉丁美洲公司副总裁的职位。
    • 根据6月15日在美国怀特普莱恩斯美国地方法院提起的诉讼,这家Armonk公司指控Rodrigo Kede Lima违反了不竞争协议并滥用了商业秘密,并要求归还近130万美元的股票期权。
  6. 2020

    IBM files second patent lawsuit against Zillow

    Lawsuit filed

    IBM filed a second lawsuit against Zillow, alleging that Zillow infringed five patents used to improve search results and simplify content displays. Zillow said it believed the claims were without merit and intended to defend itself.

    Company response

    • Denial — Zillow

      We believe the claims in the case are without merit and we intend to vigorously defend ourselves against the lawsuit.

    Source excerpt

    • We believe the claims in the case are without merit and we intend to vigorously defend ourselves against the lawsuit.
    • IBM is escalating its legal battle with Zillow, filing a second lawsuit accusing the listings giant of infringing on patents to build its real estate search engine.
    • In a July 21 lawsuit, filed in federal court in Washington, IBM claimed the Seattle-based company infringed on five patents that improve searches by ranking results and simplifying content displays, among other things.
  7. 2020

    Former employee sues IBM over alleged age discrimination

    Lawsuit filed

    A former IBM employee filed a complaint accusing IBM of age discrimination under federal and Connecticut law. The allegations are presented in the complaint, not as a court determination.

    Source excerpt

    • A Tuesday complaint filed in the District of Connecticut accuses International Business Machines Corporation (IBM) of violating the Age Discrimination in Employment Act (ADEA), and the Connecticut Fair Employment Practices Act (CFEPA) through discriminatory practices.
    • IBM否认有过系统性的就业年龄歧视
    • 就业律师Shannon Liss-Riordan代表IBM前员工发起诉讼,指责IBM 因年龄歧视而解雇他们。
  8. 2020

    IBM settles Pentagon claims over alleged network security failures

    Settlement

    IBM agreed to pay the U.S. government $900,000 to settle claims that it failed to provide contracted network security services and submitted false claims. The allegations concerned hacking attacks on the National Defense University; the settlement does not establish that the allegations were proven.

    Company response

    • Denial — IBM

      IBM spokesman Saswato Das declined to comment on the settlement. But the Armonk, New York-based company has argued that it wasn’t “contractually liable for security breaches”

    Source excerpt

    • “It was alleged that IBM submitted false claims for the information technology services that it provided NDU,” the Defense Department’s inspector general said, disclosing the settlement in its latest semiannual report.
    • An 11-year-old Pentagon case against International Business Machines Corp. ended quietly in October when it agreed to pay the government $900,000 to settle claims involving hacking attacks on the National Defense University that began in 2006.
    • The allegations against IBM resulted from a probe by the Defense Criminal Investigative Service’s Cyber Crimes Division of a 2008 hacker attack that accessed about eight computers and stole about 367 files.
  9. 2020

    IBM reaches $24.25 million FCC settlement over E-Rate violations

    Settlement

    The FCC announced that IBM reached a $24.25 million settlement over alleged violations of E-Rate program rules. The FCC said IBM failed to satisfy competitive bidding rules in New York City for funding years 2005–2008 and failed to provide eligible equipment and services in El Paso for funding year 2001. Under the settlement, IBM will pay $24.25 million and provide employee training before submitting future E-Rate bids.

    Company response

    • Remediation — IBM

      IBM will also provide employee training on the FCC’s competitive bidding and eligibility requirements before it submits future bids for the E-Rate program.

    Source excerpt

    • However, upon investigation, the FCC found that IBM failed to satisfy the Commission’s competitive bidding rules for funding years 2005-2008 in New York and for funding year 2001 IBM failed to provide eligible equipment and services in El Paso.
    • As a result of this conduct, IBM will pay $24.25 million.
    • On Wednesday, the Federal Communications Commission (FCC) announced that it reached a $24.25 million settlement with IBM for the company’s purported violations of the FCC’s E-Rate program rules in relation to New York City and El Paso, Texas, school districts; this funding will be returned to the Universal Service Fund.
  10. 2020

    IBM apologizes to Lynn Conway for her firing

    Company response

    IBM publicly apologized to Lynn Conway for the hardship she encountered after being fired in 1968; the article reports that she was fired for being transgender.

    Company response

    • Apology — IBM

      “We deeply regret the hardship Lynn encountered,” the tech giant told Forbes, just before an October virtual event hosted by IBM

    Source excerpt

    • A brilliant computer scientist whose work helped to shape the internet era is finally getting a public apology from IBM — more than 50 years after she was fired for being trans.
    • “We deeply regret the hardship Lynn encountered,” the tech giant told Forbes, just before an October virtual event hosted by IBM
    • It’s taken 52 years, but IBM has finally issued a full apology for firing the pioneering computer scientist Lynn Conway because she was transgender.
  11. 2001

    IBM and Nazi-era data processing

    Historical investigations and public debate examined IBM’s relationship with its German subsidiary and the use of Hollerith punched-card systems by Nazi authorities for census, classification and concentration-camp administration. The subject remains controversial, particularly concerning the degree of knowledge and control exercised by IBM’s headquarters during the war.