Even as IBM Corp. reports record profits, thousands of its U.S. employees are staring at pay cuts.

AP reports:

It's the result of IBM's response to a lawsuit in which the company was accused of illegally withholding overtime pay from some technical employees. IBM settled the case for $65 million in 2006 and has now decided that it needs to reclassify 7,600 technical-support workers as eligible for overtime

I personally doubt it's the effect of a lawsuit, it's the effect of IBM's operation LEAN.