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Shareholder drops IBM lawsuit over concealed China loss

An IBM (IBM.NYSE) shareholder has dropped a lawsuit accusing the company of concealing how its disclosures to a National Security Agency surveillance program damaged its China business and overall market value, Reuters reported, citing a letter made public on Monday by John Browne, a lawyer for lead plaintiff Louisiana Sheriffs’ Pension & Relief Fund in Baton Rouge. Revelations of the NSA’s “Prism” spying program and IBM’s cooperation with it caused the Chinese government and Chinese businesses to abruptly cut ties to IBM. The company reported quarterly declines in China of 22% in sales and 40% in hardware sales last October.

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