Given that so many class action suits succeed or are settled out of court, it comes as a surprise that US District Judge Jed Rakoff granted a motion to dismiss the class action brought against IBM over its statements in late 1992 that the dividend was safe only months before it slashed it to just $1 a year from $4.64. The class-action suit sought ridiculous damages of as much as $1bn. The judge dismissed the suit without comment. It had been scheduled to go to trial yesterday in US District Court in White Plains on Monday. Judge Rakoff indicated that he would release a written order on his dismissal by the end of the month. An appeal is likely.
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