ABC News reported recently that a class action lawsuit has been filed by a shareholder against BlackBerry, claiming that it misled investors about its financial future, including giving false information about how the company’s smartphone line would fare against competitors.
The news outlet reported that the lawsuit is aimed at representing thousands of shareholders who purchased Blackberry stock between Sept. 27, 2012 to Sept. 20, 2013. BlackBerry, based out of Ontario, Canada, allegedly told investors last year that the company was “progressing on its financial and operational commitments.” It also told investors that previews of its BlackBerry 10 platform were well received.
The lawsuit, however, alleges, “In reality, the BlackBerry 10 was not well received by the market, and the company was forced to … lay off approximately 4,500 employees, totaling approximately 40 percent of its total workforce.”
BlackBerry’s CEO Thorsten Heins and Chief Financial Officer Brian Bidulka were named as defendants in the lawsuit, according to ABC News. Last month, BlackBerry announced that it would suffer nearly a billion dollars in losses primarily related to the “write down of unsold BlackBerry Z10 touchscreen smartphones.”
“The timing and magnitude of BlackBerry’s stock price decline negates any inference that the loss suffered by the plaintiff and the other class members was caused by changed market conditions, macroeconomic or industry factors,” the lawsuit says.
This case does a good job representing securities class action proceedings, which typically involve a stock or security value going down because of company mismanagement or improper disclosure of its financial prospects.
If you are a shareholder and you have questions concerning your legal interests when it comes to securities litigation, please contact Gary S. Graifman, Esq., at Kantrowitz, Goldhamer & Graifman, P.C., at 1-(800) 711-5258, you can also send us an email or fill out the contact form on our website.
Kantrowitz, Goldhamer & Graifman, P.C. – Class Action Lawyers