Lawsuit accuses BlackBerry of raising false hopes

October 15, 2013
Workers prepare the podium before the start of the BlackBerry 10 launch event by Research in Motion at Pier 36 in Manhattan on January 30, 2013 in New York City

BlackBerry shareholders on Tuesday launched a class-action lawsuit against the company, alleging its optimistic sales forecasts for its new smartphones cost them hundreds of millions of dollars, lawyers announced.

The on behalf of Canadian shareholders who purchased BlackBerry stock between September 27, 2012 and September 20 of this year, alleges that "knowingly or negligently" misrepresented that its BlackBerry 10 line of smartphones were being well-received by consumers and that the was in a strong financial position.

The class action is the second launched against BlackBerry in the past week.

"For almost a full year, BlackBerry management made market statements based on prophecy rather than fact," class-action lawyer Tony Merchant said in a statement.

"Thousands of Canadians who invested in BlackBerry Limited in the past year have lost hundreds of millions of dollars."

BlackBerry unveiled its new platform in January as it sought to regain lost momentum, but its most recent numbers suggest this has been a spectacular failure.

Last month, the company announced it was laying off 4,500 staff—or one third of its global workforce—after losing $965 million in its last quarter as sales plummeted.

BlackBerry still has some 70 million subscribers worldwide, but most of these are using older handsets, with the newer devices on the BlackBerry 10 platform failing to gain traction.

BlackBerry's share price meanwhile has slid from a 52-week high of $17.80 in January to below $9 recently.

Explore further: BlackBerry posts surprise loss, shares plunge

Related Stories

BlackBerry posts surprise loss, shares plunge

June 28, 2013

Canadian smartphone maker BlackBerry on Friday posted an unexpected first quarter loss and disappointing sales figures for its new phones, sending its share price tumbling in early trading.

BlackBerry co-founder 'in joint bid talks'

September 21, 2013

One of BlackBerry's co-founders has held talks with private equity firms about making a joint bid for the struggling Canadian smartphone maker, The Wall Street Journal reported Saturday.

Cerberus interested in BlackBerry

October 2, 2013

Private equity firm Cerberus is interested in taking a look at BlackBerry's books as a prelude to a possible bid for the troubled smartphone company.

Recommended for you

Netherlands bank customers can get vocal on payments

August 1, 2015

Are some people fed up with remembering and using passwords and PINs to make it though the day? Those who have had enough would prefer to do without them. For mobile tasks that involve banking, though, it is obvious that ...

Power grid forecasting tool reduces costly errors

July 30, 2015

Accurately forecasting future electricity needs is tricky, with sudden weather changes and other variables impacting projections minute by minute. Errors can have grave repercussions, from blackouts to high market costs. ...

Microsoft describes hard-to-mimic authentication gesture

August 1, 2015

Photos. Messages. Bank account codes. And so much more—sit on a person's mobile device, and the question is, how to secure them without having to depend on lengthy password codes of letters and numbers. Vendors promoting ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.