AN ANGRY SHAREHOLDER has filed a class action lawsuit against Nokia, claiming the company misled investors with the promise of Windows Phone success.
The investor, Robert Chmielinski filed the lawsuit against Nokia in New York, saying that the Finnish phone firm falsely talked up Lumia's chances of turning the company's fortunes around.
"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," said lawyers representing Chmielinski.
"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 [per cent], and projected first quarter 2012 Devices & Services net sales of €4.2 billion."
The lawyers also made reference to the well-publicised Nokia Lumia 900 "glitch", which resulted in the Finnish company offering customers an automatic $100 rebate in the US, making the phone "essentially free".
Earlier this week, Nokia CEO Stephen Elop admitted that the company was struggling. He said, "It's hard to break through. It's been harder than we expected."
Nokia has issued a statement to The INQUIRER regarding the lawsuit. It said, "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." µ
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