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Shareholders file a class-action lawsuit against RIM

Posted: , by Daniel P.

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Shareholders file a class-action lawsuit against RIM
It's all about lawsuits these days, and RIM was beginning to feel a bit left out. Not any more - misleading financial projections is the reason behind a class-action lawsuit filed against RIM by some of its shareholders. Those of them who purchased the company's stock in the period, mentioned in the lawsuit, want compensation.

We were poring through financial statements of the top mobile manufacturers recently for a research, and noticed that at one point RIM just says they will no longer include the ASP (Average Selling Price) metric in the quarterly releases. RIM's average selling price has long been second only to Apple, considering the outdated hardware sold at top-shelf prices.

Reluctance to continue disclosing it may mean only one thing - it is heading down in the next quarters, and RIM is perfectly aware of that, while it goes through a transitional period. Well, shareholders are obviously not very kosher with insufficient financial information disclosures, and that's why they are charging ahead with the class-action. Such lawsuits are a dime a dozen, but we are curious if this will affect RIM's quarterly reports in the months to come. The Canadian company denies any wrongdoing, of course, not to mention that its lawyers have the word "projections" on their side.

via IntoMobile

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posted on 27 May 2011, 10:21

1. snowgator (Posts: 3604; Member since: 19 Jan 2011)

"RIM's average selling price has long been second only to Apple, considering the outdated hardware sold at top-shelf prices."

Is it just me, or are you very anti-Blackberry, my dear Phone Arena? It seems this is a lawsuit completely without merit- stockholders understand that past performance is not a guarantee of any future profits, and RIM is not the only investment struggling to recover from the last three years. Just seems like you seem to take shots at RIM at every given chance, and emphasis the bad with this company. There HAVE been some industry insiders who project RIM will be fine over time, and the strategy of the future devices have centered around the tech and success of the Playbook. The Playbook certainly isn't a runaway success, but it's sales have been respectful. Relax, Phone Arena- They are not Darth Vader slicing kids in two. They are a mobile company that has contributed a lot to the success of the cell phone industry, and still have a lot of strong points. We are better off with an independent, successful RIM.

posted on 27 May 2011, 10:30 4

2. JeffdaBeat (unregistered)

PhoneArena doesn't write stories in the classic journalism sense. The site reports on rumors, stories, and features (subjective comparisons, reviews...). It also does it in a conversational tone that may lean to one side or another. But that's how the site has always been. I don't think they are anti-Blackberry...it's just RIM hasn't really had much good news lately. If you're looking for official and less conversational phone news, PhoneScoop is a better place. They only report on official releases. I use both sites in conjunction...

posted on 27 May 2011, 11:28 1

3. remixfa (Posts: 14605; Member since: 19 Dec 2008)

They write many articles purposely to incite people to post on the boards. They have some of the most active boards of all the tech sites and people posting means people returning to do replys. Either that or they really are that annoyingly pro-apple.
and RIM really is just having a bad time. I personally think they need to file their board of directors and get someone more agressive and less whiney in there. QNX needs to be on their phones ASAP and they need more agressive "flagship" devices.

posted on 27 May 2011, 11:30 1

4. apple who? (unregistered)

what do you expect? another jealous author who hates any other company that outshines apple.

posted on 27 May 2011, 12:52

7. nb2six (Posts: 298; Member since: 27 Apr 2011)

well someone is just looking to stir the pot lol. Today's dish a varrying combination of iOS vs Android and Co.

another day at PA nonetheless

posted on 27 May 2011, 13:40

8. hello46921 (unregistered)

It should be "poring through", not "pouring through" records

posted on 26 Jun 2011, 19:08

19. Rim lies (unregistered)

Rim lies, as soon as they "revised" their figures just a month after releasing the figures I knew I had to get out, I took that $10 drop and seems I could've got hit much worse. I only wish I had bought puts but it was already expensive when it happened.

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