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IBM’s Ties to NSA Hurt Sales in China, Investors Claim

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Court House News
December 15, 2013

IBM hid its cooperation with the NSA’s PRISM program, the disclosure of which by Edward Snowden caused China to “abruptly halt” sales and the stock price to plummet, investors claim in a class action.

The lawsuit, filed Thursday in Manhattan Federal Court, claims IBM touted itself as a market leader in the Asia-Pacific region when it knew that China “would not tolerate” its cooperation with the National Security Agency.

In June, former CIA contractor Snowden divulged the existence of PRISM, a top-secret electronic surveillance program that gives the NSA access to the servers of several major tech companies, including Google and IBM.

Former CIA and NSA Director Michael Hayden called Snowden’s disclosure “the single most destructive leak of American security information in our history.”

Investors say the NSA used PRISM “to spy on China and other countries,” including hacking into critical network infrastructure at universities in China and Hong Kong.

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This article was posted: Sunday, December 15, 2013 at 4:16 am

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