<A HREF="http://www.eweek.com/article2/0,1895,2142070,00.asp?kc=EWKNLINF060607STR3">IBM misled investors</A> by overestimating the impact of stock-based compensation expenses on quarterly earnings in 2005, the U.S. Securities and Exchange Commission said on Tuesday.

The securities regulator made the statement as it reached a settlement with International Business Machines Corp., in which the company agreed not to commit future disclosure violations.