“Nokia has been hit with a class-action lawsuit charging the company with making promises it couldn’t keep,” Don Reisinger reports for CNET.
“Law firm Robbins Geller Rudman & Dowd (RGR&D) yesterday filed a class-action lawsuit against Nokia and its executives in the U.S. District Court for the Southern District of New York on behalf of those who owned the company’s shares between October 26, 2011 and April 10,” Reisinger reports. “‘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. It did not,’ the law firm wrote in a statement. ‘This became apparent on April 11, 2012, when Nokia disclosed that its first quarter performance would be worse than expected.'”
Reisinger reports, “Nokia has watched its business deteriorate over the last few years, and slow considerably during the last couple of quarters, forcing its CEO Stephen Elop last month to warn of more trouble in 2012.”
Read more in the full article here.
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[Thanks to MacDailyNews Reader “Flyboyrls” for the heads up.]
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Elop is doing a fine job…… of putting the “No” in Nokia.
“The smartphone beta test is over” — I guess that means Nokia is going back to just making feature phones.
Funny
While Nokia might well fail, the lawsuit is absurd since they clearly have not given the new strategy time to work. This is about lawyers being lawyers and chasing ambulances.
Yeah it wouldn’t have anything to do with Elop being an ex Microsoft veep (and best bud to monkey boy (Ballmer)) and quite possibly putting Microsoft’s best interests above Nokia’s (and by extension the Nokia shareholders) to whom he now has a primary fiduciary responsibility to, would it?
Naaaaaaa…
That’s right. But these days people have zero patience or tolerance. Chalk it up to the instant gratification Internet era.
Uh, Windows Phone was completely dead on arrival. Time isn’t going to change that. I think this lawsuit has merit – Nokia promises shareholders that WP will save business and make them money, fails to do both.
How does Nokia NOT deserve to be punished by shareholders for pinning their hopes on a mobile OS with no future?
The shareholders should just dumped Nokia’s shares instead of hiring ambulance chasers to stir the shit. Lawyers are parasites and should be avoided at all cost. There is no guarantee that this class-action suit would succeed because running a business is a gamble. If any stupid court should find this law-suit credible, then it is putting any business at risk. No one would dare to take risks and the consequence will be there would be zero start-ups. Asian competitors would be able to laugh their way to the bank because now their Western counterparts would have their hands and feet tied up, always wary that their shareholders would sue them if they failed.
Nokia avoided one ‘Burning bridge’ (Android) by jumping onto another.
The Finnish people should start a class action lawsuit to remove Elop.
That is the thing about iRoadKill. You don’t always see them at the same time. First you spot one like a RIMM and then you go on a little bit and there is another like a crushed and bleeding Nokia. You know that there is more around the next bend. And if you look closely, you can spot the frightened next iRoadKill in the dark wondering if they will make it across to the next season. Or is this there last. To flee or go for it with their eyes closed. Thud! Another iRoadKill.
Love it!
Oh, come on people! How about an alternate headline?
– Losers sue Nokia for failing to predict future.
– Losers sue Nokia for being optimistic.
– Losers whine and sue Nokia for failing to have 100% guarantee on stock investment.
+1
No risk investing, who’d of thunk it?
I like their strategy. I like it a lot.
WTF? I seriously hope this gets thrown out of court.
Another idiotic lawsuit. Nokia has made a legitimate effort to turn things around. Without much in the way of alternatives Windows Mobile was probably their best option. Investors know that there is risk, it goes with the territory. Lawsuits like this are just a drain on the company’s resources. No up side except for the ambulance chasers.
This is ridiculous. Shareholders should know that company predictions are exactly that — estimated guesses on how the company will perform, not “promises”.
No one mentions the burr in the boot.
People in general are so tired of Windows that anything with a MS name or logo on it leaves them queezy.
The vultures are rounding the courpse.
This is a dumb lawsuit! At least Nokia did not jump on the Android bandwagon. I would consider the Windows platform the second best mobile platform available at the Momment.
This is like filing a class action lawsuit because unicorns didn’t actually fly out shareholders’ asses on a rainbow.
Hysterical, but stupid.
Of all the possibilities of a Nokia/microsoft partnership, unicorns were actually more likely than igniting phone sales.
Stockholders should have known better anyway. If you the Brooklyn Bridge from a guy on the street, whose fault is it really?
Delicious and Nutritious!