Nokia Investor Files Class Action Suit Against Company Over Fraud

May 5, 2012 in News by Hashim Fannin

Nokia Fraud

Its not enough that Nokia is bleeding market share and struggling with its Lumia line.  Now things have gotten even more interesting, as the company is being sued by one of their investors.  Investor Robert Chmielinski accuses Nokia of committing fraud between October 11, 2011 and April 10, 2012.  Chmielinski alleges during that period, Nokia CEO Stephen Elop made several irresponsibly confident statements about the then-forthcoming Windows Phone 7 powered Lumia smartphones.  Chmielinski asserts Elop was aware those statements were false and were not based on any business plans or projections.  April 11th, Nokia issued a statement warning investors their quarterly performance would not be up to expectation.  Nokia would eventually report losses of $2.17 billion in the first quarter of 2012.  Chmielinski is bringing this suit as a class action.  This would include anyone who invested in Nokia between October 11, 2011 and April 10, 2012 in the class.  Nokia acknowledged the suit in a press release stating, “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.”

 

Source:  ARS Technica & Nokia

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