BlackBerry said on Thursday it had agreed to pay $165 million to settle a class action lawsuit brought against it over eight years ago for allegedly defrauding shareholders by exaggerating BlackBerry 10 smartphones’ success and profitability.
Under the agreement, which requires a judge’s approval, the payment will be made to settle claims brought on behalf of those who bought the company’s shares between March 28, 2013 and Sept. 20, 2013.
Reuters reported on Wednesday that the company was planning to settle the lawsuit to avoid trial in the United States.
U.S. District Judge Colleen McMahon in Manhattan federal court granted a request from the company’s lawyers and shareholders to adjourn their planned trial to negotiate a preliminary settlement.
Shareholders accused the company of concealing BlackBerry 10’s true sales prospects in public statements during 2013, resulting in an inflated share price.
MacDailyNews Take: If you bought BlackBerry (Research In Motion) shares between March 28, 2013 and Sept. 20, 2013 you deserve more than a class action pittance, you deserve to have your head examined.
Beleaguered RIM is Dead Company Walking (DCW). They’re just killing time while praying for a buyout. — MacDailyNews, May 1, 2012
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