There are many ways to fix this issue. I just happened to have a box lying around that fit for the time being. Anything that supports the monitor can be used.
This video shows the design flaw in iMac desktop stands. We have two iMac's with broken stands in the office. Both of these iMac's have spent their entire lives sitting on a desk and have not been moved.
Its hard to believe Apple would overlook such a flaw.
Warranty is expired and they will not fix the issue or admit that there is a design flaw.