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

Posted: , posted by Victor H.

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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.”


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

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