x PhoneArena is hiring! Reviewer in the USA
  • Hidden picShow menu
  • Home
  • News
  • Nokia shareholders file class action lawsuit against the company over Windows Phone "fraud"

Nokia shareholders file class action lawsuit against the company over Windows Phone "fraud"

Posted: , by Victor H.

Tags :

Nokia shareholders file class action lawsuit against the company over Windows Phone
Nokia has willfully misled its investors by falsely claiming that Lumia sales could turn around the company’s position. That’s the exact accusation Nokia shareholder Robert Chmielinski used when he filed a class action lawsuit against Nokia and its highest ranking officials - CEO Stephen Elop and CFO Tomy Ihamuotila. He doesn’t claim that Nokia didn’t know about the risks associated with the Windows Phone transtion. Instead, he throws a heavy punch by saying that the company knew, but misrepresented reality to sell shareholders on the new strategy.

We already know about Nokia’s catastrophic decline in the first quarter of 2012, and Chmielinski says that the Finnish company has misled investors all until then between October 2011 and April 2012, promising an impossible turn-around forced by WP phones.

Now, that the facts are out there, it’s obvious that for Nokia’s shares that are just spiraling down and for investors, this resulted in huge losses.

Chmielinski cements his point with quotes from press releases and conference talks showing that Nokia paints a bright picture to shareholders while reality gets gloomy. Other arguments include the $100 credit for the connectivity bug in Nokia Lumia 900, which also hurt the company’s financials. He then goes on to accuse Elop and Ihamuotila to be “engaged in a scheme to deceive the market.”

“During the Class Period, defendants had both the motive and opportunity to conduct fraud. They also had actual knowledge of the misleading nature of the statements they made or acted in reckless disregard of the true information known to them at the time.

In so doing, the defendants participated in a scheme to defraud and committed acts, practices and participated in a course of business that operated as a fraud or deceit on purchasers of Nokia securities during the Class Period.”

We don’t know whether Chmielinski’s lawyers can actually win this, but it’s definitely a black PR spot in Nokia’s yard when the company is struggling.


+- Press Release

48 Comments
  • Options
    Close






posted on 04 May 2012, 07:34 13

1. RaKithAPeiRiZ (Posts: 1488; Member since: 29 Dec 2011)


y u no make meego again ?

posted on 04 May 2012, 07:45 15

2. MechaFatigue (Posts: 7; Member since: 13 Jan 2011)


Go for Android Nokia.

posted on 04 May 2012, 09:07 3

17. pongkie (Posts: 634; Member since: 20 Aug 2011)


nah samsung pretty much overshadows everyone in the android family

posted on 04 May 2012, 09:12 9

18. ivanko34 (Posts: 617; Member since: 04 Sep 2011)


If Nokia does an android phone I leave samsung for Nokia

posted on 04 May 2012, 09:46 3

22. kanagadeepan (Posts: 943; Member since: 24 Jan 2012)


Yes.... There is no business worth investing without competition...

Still, I don't think Nokia has to struggle a lot if they are going through the android way, imho... For example, how about making a phone with cam of Pureview + ICS + 720p CBD AMOLED screen...

posted on 04 May 2012, 10:02 1

25. pongkie (Posts: 634; Member since: 20 Aug 2011)


nokia may have some innovations but samsung is fast...

posted on 05 May 2012, 09:59 2

38. Archan_Pe (Posts: 74; Member since: 08 Apr 2012)


but nokia's innovations beats samsung being fast.. cause nokia innovations make you go "OMG" like the pureviews samsung makes you go "COOL"

posted on 04 May 2012, 10:06 5

26. Credo (Posts: 748; Member since: 19 Apr 2012)


Windows Phone 8 will beat Android very soon

posted on 05 May 2012, 19:15 3

41. ericmeister (Posts: 4; Member since: 05 May 2012)


WP 7.5 with Lumia 900 already beat Android, at least according to Apple's cofounder Steve Wozniak. But yeah, after WP8, there definitely will be no match for it.

posted on 04 May 2012, 11:05 1

29. neutralguy (Posts: 1152; Member since: 30 Apr 2012)


I think, one of the reasons why nokia didn't join the android world is the fact that you need to use premium hardwares to function the OS smoothly. Nokia can't afford that now that they are in struggle. This is just my opinion, i don't know whether this is true, I'm just guessing :))

posted on 04 May 2012, 11:10 2

31. CharlieAtInfinity (Posts: 253; Member since: 10 Apr 2012)


You think Nokia with Android will sell??
NO
Samsung, HTC and now Sony have already taken over Android.. so only Windows, Symbian or meego is their only choice!!

posted on 04 May 2012, 16:11 3

35. downphoenix (Posts: 3165; Member since: 19 Jun 2010)


given how poorly WP7 has done so far, and how their dead platform Symbian has been outselling it STILL TO THIS DAY (maybe not in the US but literally everywhere else in the world)... no.

Nokia would have had a great rebirth if they went all in with Android or did a complete revamp of Symbian to make it much more competitive to Android and Iphone. They instead went with a platform that has been outperformed by Windows Mobile in marketshare. Nokia would have even been better off going with Blackberry for some kind of dual partnership.

The reason they went with Microsoft is so Elop could trojan horse Nokia and their patents over to Microsoft.

posted on 05 May 2012, 19:39 1

42. ericmeister (Posts: 4; Member since: 05 May 2012)


How poorly has WP7 actually done so far?

What I've heard, after AT&T started selling Lumia 900 in April in USA, theyve been out-of-stock. AT&T is actually surprised that they have sold so well. Also Amazon.com had Lumia 900 as top selling phone.

Also, the biggest operator in USA, Verizon (100 million customers), starts selling Lumia WP8 phones after summer, as well as Sprint (50 million customers). WP8 enables highend features for Nokia's phones, e.g. 720p resolution, Full HD Video, Dolby Surround, PureView Camera, Quad Core processor etc etc

And Nokia will bring 10'' tablet with Windows 8 to the market on Q4 as well. Elop has said that Nokia is taking the time to do the right thing with the tablets - they do not want to produce yet another unmemorable tablet that drown in the sea of iPads. Turkey has already invited Nokia to submit a bid for producing 15 million Windows 8 Tablets for them

http://nokiagadgets.com/2012/03/13/turkey-asking-a-bid-from-nokia-for-15-million-tablets/

Windows 8 will be released on PC's as well - this will definitely increase the popularity of phones, since after the realease the operating system's user experience is similar on PC's, Tablet's and Phones (+ XBox)

posted on 04 May 2012, 11:59 1

32. Credo (Posts: 748; Member since: 19 Apr 2012)


better leave Symbian behind, i hate that OS, so does almost everyone, Nokia is so stupid to leave MeeGo behind, a true multitask OS that could make great succes.

Love to see Nokia going further with MeeGo and Windows Phone at the same time and leave Symbian behind in the 1st century.

posted on 06 May 2012, 11:57 1

46. NateAdam8 (Posts: 388; Member since: 17 Feb 2012)


How can most people hate what thay've never tryed because of Nokia being stupid they only had crappy Symbian phone in the US when it should've made there better phone for pay as you go companys

posted on 05 May 2012, 19:13 1

40. ericmeister (Posts: 4; Member since: 05 May 2012)


Why should they change the best os in the market to crappy Android? Even Steve Wozniak said, that Lumia 900 is an amazing phone, and Android-phones have no match for it.

posted on 06 May 2012, 02:52 2

43. Forsaken77 (Posts: 553; Member since: 09 Jun 2011)


So they can make some money back! Consumers aren't buying windows Phones, that's a fact. If Nokia put out a high-end phone, it would sell. That's all Android is..... the highest spec phone wins. Android fans want the most powerful device on the planet, whether they need it or not. If Nokia Put out a high quality, high-end phone with that awesome screen technology, dual core S4 processor, gig of RAM and a good battery... it would sell millions. Nokia is also one of the few manufacturers that can differentiate itself with a hot looking device.

posted on 06 May 2012, 05:32

44. ericmeister (Posts: 4; Member since: 05 May 2012)


Consumer weren't buying Windows Phones, until Nokia Lumia 900 was released. Nokia will release highend phone on Q3 with WP8. The phone will include most of the features you described for highend phone, those werent just possible on WP7. WP8 phone will be released to kill iPhone though, not Android (Lumia 900 is already better than any Android phone, according to Apple's co-founder Steve Wozniak). The real Android-killer is Lumia 610 in the cheaper market-area.

With WP8, Lumia will get (according to MS Nerd) PureView 12 MP Camera (from Nokia N8, so not yet the revolutionary 41 MP from Nokia 808 - desing has it's limits too), Snapdragon S4 processor, ClearBlack screen (unlike with iPhones, this enables you to read screen easily in sunlight without boosting brightness) with 720p resolution, Full HD Video and Dolby Surround,

posted on 04 May 2012, 07:52 4

3. AndroidShiz (Posts: 154; Member since: 08 Nov 2011)


It's just so weird. Windows phone, failing to bring them from the ashes? Who knew? Besides HTC, Samsung, LG, Sony, Huawei, and Stevie Wonder I mean.

posted on 04 May 2012, 07:53 7

4. AhmadAlsayegh (Posts: 293; Member since: 18 Jul 2011)


I think Symbian reached its maturity and it was time for Nokia to innovate or do a change in the aspect of a merger, Nokia has taken the initiative towards a new strategy, but I guess it failed to turn the tables; especially that the smart phone market has a very fast pace...

First step in resolving any problem is admitting that you are in a problem, and honestly I don't see Nokia doing that, at least not the management

-posted from my Samsung Focus

posted on 04 May 2012, 08:14 5

5. AndroidShiz (Posts: 154; Member since: 08 Nov 2011)


It's the shareholders overall fault. The head dude used to work at Microsoft. His loyalty had nothing to do with shareholders making a profit. The two might as well be Manchurian Candidates. They should have dropped their shares as soon as they announced the exclusive partnership with a fledgling operating system. A wise CEO would've also developed Android phones, if only to save the company from spiraling. If it weren't for the forced Microsoft patents that MS uses against Android manufactures, and the special deal of "having to" make windows phones, I believe Samsung and HTC and the likes would completely abandon WP. It's never good when you have to basically force manufactures to make phones using their software, or else pay even higher fees for Android . How could you with basic common sense not get rid of your shares and invest elsewhere?

posted on 04 May 2012, 14:16 2

33. Whateverman (Posts: 3271; Member since: 17 May 2009)


Dude, that was beautiful!

posted on 04 May 2012, 08:20 5

6. HugeTroller (banned) (Posts: 80; Member since: 27 Apr 2012)


I love the current price of Nokia shares and I am buying more soon.

posted on 04 May 2012, 08:28 7

7. -box- (Posts: 3991; Member since: 04 Jan 2012)


Suing the company you're invested with isn't a great way to make stock prices magicaly go back up. Just sayin'

posted on 04 May 2012, 16:19

36. downphoenix (Posts: 3165; Member since: 19 Jun 2010)


well for some its not about getting the stock price back up but just recovering some of their lost investment that has been so shamelessly squandered. Not sure how Nokia manages its board elections, but heads of Elop and others will surely roll soon unless they can get that Microsoft buyout to occur soon.

posted on 04 May 2012, 08:28 4

8. iamcc (Posts: 1319; Member since: 07 Oct 2011)


So the dude is mad he fell for their sales pitch. Get over it...

posted on 04 May 2012, 08:30 2

9. Credo (Posts: 748; Member since: 19 Apr 2012)


Stop making low end Symbian devices, why do you think you don't make money anymore, becouse people don't want low end device's.
Go further with MeeGo and Windows Phone 8 and make all of those devices HIGH end !! Add quad cores, micro sd card support, 720p or higher screenresolutions, NFC, those polycarbonate designs and add on every device your newly pureview technology, add 1080p Full HD video recording, and most important of all, develope the Action Movie FX App for both MeeGo and Windows Phone!
Let me be the BOSS and Nokia will be the top nr 1 i'm sure of that !

posted on 05 May 2012, 10:08 1

39. Archan_Pe (Posts: 74; Member since: 08 Apr 2012)


DUDE thats nearly a stupid idea.... well put those thing in 1 or 2 nokia phones making it there flagship... but make em all? are you nuts? you know whats the point of making these low-ends? it to appeal to the people who want smartphones and still want it pocket friendly... but really symbian is just a bad idea... if they used a meego low-end.... that would appeal greatly to the not "sky-high" budgeted people....
P.S. if you were the boss of nokia and you had all those plans, LOL! it would probably in the book of world records... as the most stupid thing a company has ever done... LOL!

posted on 06 May 2012, 09:09 1

45. Credo (Posts: 748; Member since: 19 Apr 2012)


dude thats the point, open your eyes, both MeeGo and Windows Phone are for low or high end, they are both the most user friendly OSess out there, and most important of all, they don't need thens of thousands of processors to make it run smootly, they bote work smootly with just 1 core, thats the point ! just telling you my opinion :D

posted on 06 May 2012, 21:40

48. Archan_Pe (Posts: 74; Member since: 08 Apr 2012)


You didn'y get my point xD... Im agreeing with you on the "meego and windows phone" but to make them all high-end? thats pathetically insane! BTW you said "the both work smoothly with just 1 core" but in your earlier comment you said "add quad cores" xD... epic fail much?... I was commenting on the fact that your making everything high-end which is insane! I wasnt commenting on the OS... get me?

Want to comment? Please login or register.

Latest stories