Nokia sued over Windows Phone deal
By Nicole Kobie
Posted on 4 May 2012 at 11:47
Nokia faces a class-action lawsuit, with a shareholder saying the deal with Microsoft has failed to revive the struggling firm as promised.
Filed in New York by a single complainant, the class-action suit accuses Nokia and some of its executives of making "false and misleading" statements about the potential for success with Windows Phone, and seeks damages for shareholders negatively affected by the move to Microsoft's OS.
"The complaint alleges that during the Class Period, defendants told investors that Nokia’s conversion to a Windows platform would halt its deteriorating position in the smartphone market," a statement from the law firm Robbins Geller Rudman and Dowd said. "It did not."
Defendants told investors that Nokia’s conversion to a Windows platform would halt its deteriorating position in the smartphone market
It pointed out that the firm's continuing decline "became apparent" when Nokia revealed its first quarter results were worse than expected. "It also disclosed a glitch in its newest Windows offering – the Lumia 900," the statement said. "Nokia had to immediately offer customers an automatic $100, making the phone essentially free."
The claim says the revelations led Nokia's share price to fall 16% in a single day - however, the rebate did help the phone sell out in the US, delaying the Lumia 900's arrival in the UK.
At a meeting with shareholders earlier this week, CEO Stephen Elop admitted the firm was struggling with smartphones: "It's hard to break through. It's been harder than we expected."
Class-action suits allow a group of people to collectively file a suit. The law firm is looking for anyone affected - any shareholder since the end of October - to join the suit, which is still in early stages. Nokia has yet to respond at the time of publishing.
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The shareholders are revolting........
By mrmiley on 4 May 2012
If the shareholders aren't happy with the companies strategy they should complain using the usual mechanisms. If they still don't like it they should invest in something else! Investing is not a "sure thing". This just smacks of teddies being thrown out of prams based on hindsight.
By russell_g on 4 May 2012
shares can go down as well as up...
What did this complainant expect Elop to announce? 'We've adopting Windows Phone as our OS, and it might be a total flop, but we hope it won't?' The plaintiff clearly has more money than sense if he is prepares to throw cash at the US legal system to compensate him for the vagaries of the free market.
By Noghar on 4 May 2012
Typical Americans !
this did not work out how i "wanted" therefore i must sue as i cannot be held responcible somebody else is to blame !!!
WEL GROW UP USA
adults makes choices not always the right ones but if they are adults they stand by there choice
By Sapper979 on 4 May 2012
Too many posts
I think we got you the first time. No need to post same thing 4 times
By curiousclive on 4 May 2012
This is a fault of the comment software.
I believe that if you refresh the page your post gets re-sent (even though the textbox is empty) and the software is not imbued with the necessary intelligence to detect a duplicate post.
By qpw3141 on 5 May 2012
The new feature that seems to have been introduced a week or so back where you get a 'your post will appear soon' box seems to induce people to do a refresh to see if their post has, indeed, appeared.
By qpw3141 on 5 May 2012
it appears that Stephen Elop is unable to look beyond Microsoft for the solution to Nokia's decline, this decision will be the downfall of Nokia in my opinion!
By Jedikj95 on 7 May 2012
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