IBM Shareholder Sues the Company Over NSA Cooperation

Spying is not good for business. That’s been the message from many U.S. tech companies and industry groups in recent months following revelations last summer that several companies were cooperating with the National Security Agency over its Prism surveillance program. The industry says it stands to lose tens of billions of dollars as customers in other countries turn to homegrown technology instead.

Now one such company, IBM, is facing a lawsuit over its cooperation with the NSA. IBM was sued yesterday by a shareholder claiming it violated federal securities laws in seeking to hide losses that stemmed from disclosures of its relationship with the NSA.