Lawsuit accuses BlackBerry of raising false hopes

Oct 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 seeks to reassure customers in new campaign

add to favorites email to friend print save as pdf

Related Stories

BlackBerry co-founder 'in joint bid talks'

Sep 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

Oct 02, 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.

BlackBerry posts surprise loss, shares plunge

Jun 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.

Recommended for you

Chinese tech giant Alibaba set to make a splash with US IPO

2 hours ago

The largest tech IPO of the year will come from a company that many Americans have never heard of. Alibaba Group - a Chinese e-commerce behemoth - has decided to go public in the U.S. after months of speculation that it would ...

Ex-Apple chief plans mobile phone for India

Apr 19, 2014

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

Apr 19, 2014

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

User comments : 0

More news stories

Growing app industry has developers racing to keep up

Smartphone application developers say they are challenged by the glut of apps as well as the need to update their software to keep up with evolving phone technology, making creative pricing strategies essential to finding ...

Making graphene in your kitchen

Graphene has been touted as a wonder material—the world's thinnest substance, but super-strong. Now scientists say it is so easy to make you could produce some in your kitchen.