Nokia hit with class action suit due to Windows Phone sales
Just a couple of days after Nokia filed a lawsuit against HTC, RIM and Viewsonic, the Finnish company is now on the receiving end of a new suit. It's been revealed that Nokia is facing a class action lawsuit that's been filed by Robert Chmielinski, a Nokia shareholder, who alleges that the firm violated federal securities laws by promising investors that moving to Windows Phone would "halt its deteriorating position in the smartphone market." The suit claims that it became clear that that wouldn't be the case when Nokia lowered the Q1 2012 outlook for its Devices and Services division, adding that the Lumia 900 data issue that caused the company to offer a $100 credit to owners of the handset made the situation worse. The plaintiff is seeking to recover damages for all buyers of Nokia shares.
Nokia has issued a short response to the suit, saying that it will be defending itself against the complaint. The company adds that it believes that claims in the suit are "without merit." The full statement from Nokia:
"Nokia has become aware of the filing of a securities class action complaint naming Nokia Corporation as a defendant, filed in the US District Court for the Southern District of New York on May 3, 2012. Nokia is reviewing the allegations contained in the complaint and believes that they are without merit. Nokia will defend itself against the complaint."
Last month Nokia officially announced its Q1 2012 results, and along with an operating loss of around $1.7 billion, the company confirmed that sales of its Windows Phone-powered have been "mixed." Obviously that's not great news, but it's kind of strange to see a Nokia shareholder decide to respond by suing and potentially making things worse for Nokia. It'll be interesting to see how things in the case go from here, so stay tuned for more on this suit as we get it.