Wireless executive who passed confidential information about BlackBerry to an analyst, gets jail time
Dunham allegedly told Detwiler Fenton's Johnston in April 2013, that returns of the BlackBerry Z10, the first handset powered by BlackBerry 10, were exceeding sales. Detwiler Fenton released a report with that information and BlackBerry's shares plummeted 7%. BlackBerry denied the report and asked regulators to investigate. Prosecutors did find out that among Wireless Zone stores, BlackBerry Z10 returns were coming in at a higher rate than sales, but it is unknown if that comment was true for all stores in all regions where the handset was offered at the time.
Back in April 2013, we noted that Detwiler Fenton had been very bearish on BlackBerry. BlackBerry's CEO at the time, Thorsten Heins, also smelled something fishy, requesting that the Ontario Securities Commission and the SEC in the U.S. both investigate. We left numerous calls with Detwiler Fenton back in 2013, none of which were returned.
BlackBerry eventually noted that returns of the Z10 were running at a normal rate.