The slowdown occurred because the standard decision-making and procurement cycles of organizations in China have been extended, Loughridge said. Typical sales volumes should resume after the first quarter of 2014, he said.
The pension fund is not only suing IBM but CEO Virginia Rometty and Loughridge as well.
As further evidence that IBM is cooperating with the U.S. government spying efforts, the suit also identifies IBM's support of Congress' proposed Cyber Intelligence Sharing and Protection Act (CISPA), which would make it easy for IT companies and federal agencies to share security information. IBM took issue with that support as well.
"This bill does not refer to China, and it does not authorize government surveillance, facts that the plaintiff and its attorneys could have easily determined had they bothered to do the slightest fact checking," said the IBM statement.
IBM declined to offer any additional comment of the suit beyond the statement.