So while Nokia might be targeting companies like HTC, ViewSonic and RIM for alleged patent infringement, it seems that they are currently being sued as well. By whom you ask? Another rival tech company perhaps? Nope, it seems that Nokia is now the target of a class action lawsuit filed in New York by none other than their investors. It seems that these investors were a little upset when Nokia made the transition to Windows Phone which ultimately led to stock prices dropping, amongst other things (issues with the Nokia Lumia 900 at its launch was another contributing factor). According to the lawyers of Nokia’s investors:
“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. This became apparent on April 11, 2012, when Nokia disclosed that its first quarter performance would be worse than expected. Nokia expected its first quarter 2012 non-IFRS Devices & Services operating margin to fall by 3%, and projected first quarter 2012 Devices &
Services net sales of €4.2 billion. It also disclosed a glitch in its newest Windows offering – the Lumia 900. Nokia had to immediately offer customers an automatic $100, making the phone essentially free.
As a result of this disclosure, the price of Nokia’s American Depositary Shares (“ADRs”) dropped over 16% in a single day.
Plaintiff seeks to recover damages on behalf of all purchasers of Nokia publicly traded securities during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.”
No word on how Nokia will proceed with this one but it will most definitely be interesting to watch, so stay tuned for updates.