Nokia hits out at securities fraud allegations

FINNISH MOBILE PHONE MAKER Nokia has hit out at allegations that it told pork pies to investors.

A class action complaint against Nokia alleges the company committed securities fraud in describing its operations in 2008. The action was filed in the US District Court for the Southern District of New York, perhaps on the theory that if they can make it there, they can make it anywhere. It names some of the company's top executives, including CEO Olli-Pekka Kallasvuo as being involved in the whole thing.

The complaint alleges that in 2008 Nokia failed to mention that it was suffering from manufacturing and supply shortage problems. It was filed on behalf of the City of Roseville Employees' Retirement System and others who bought shares in the outfit that year.

Apparently the mobile phone maker failed to mention to investors that it was losing market share due to intense price cuts by competitors and had to slash its own average selling price to maintain market share.

In September of 2008 Nokia's share price fell by about 8 per cent. The plaintiffs are seeking damages attributed to the drop in the share price.

In a statement issued this morning Nokia said that the lawsuit claims were total pants. µ