Nokia Says Claims Filed in Investor Lawsuit are Baseless

The entire Nokia management team has come under fire in the form of a lawsuit that alleges the team mislead investors concerning the success of Windows Phone. The lawsuit states that Nokia’s position as a smartphone giant has continued to derioriate despite claims otherwise. Nokia’s response to the lawsuit says that the conversion to Windows Phone did exactly what the company promised to investors in halting the slide from the global smartphone market.

The complaint filed against Nokia says that the company violated federal security laws.

“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,” the lawsuit states. “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,” the complaint continued. ”As a result of this disclosure, the price of Nokia’s American Depositary Shares (‘ADRs’) dropped over 16% in a single day.”

The complaint was filed yesterday with the United States District Court in New York and covers individuals and institutions that owned publicly traded Nokia stock during the alleged period. Nokia responded to the complaint with this statement:

“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.”

Nokia’s board of directors seems confident in the transition from Symbian to Windows Phone, with Risto Siilasmaa saying, “ I am certain we have the right team, the right strategy and increasingly the right products to emerge as a very successful company.”

Do you feel as though the transition to Windows Phone has successfully halted Nokia’s slide into obscurity? Symbian was all but dead well before Nokia decided to drop it and lack of investor confidence is the last thing the company needs right now. Let us know what you think in the comments below.

[via BGR.com]


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