BlackBerry faces class action suit
A class action lawsuit filed by BlackBerry shareholder Marvin Pearlstein claims leaders of the company failed to tell investors that "the company was not on the road to recovery and reemerging as a lead player in the wireless communications industry. In reality, the BlackBerry 10 was not well-received by the market".
The class action suit filed in a Manhattan court seeks to represent thousands of shareholders who purchased BlackBerry stock from September 27, 2012, to September 20, 2103, a period in which it alleges executives misrepresented the state of Also named as defendants in the lawsuit are chief executive Thorsten Heins and chief financial officer Brian Bidulka.
None of the allegations have been proven in court, and a representative for BlackBerry was not immediately available for comment. The court filings outline numerous news releases issued by BlackBerry, as well as cite quarterly conference calls where it alleges executives "deceive the investing public."
The lawsuit claims that the recent tumble in BlackBerry stock was a direct fallout from the executive's misrepresentation of BlackBerry's financial state.
"The timing and magnitude of BlackBerry's stock price decline negates any inference that the loss suffered by the plaintiff and the other class members was caused by changed market conditions, macroeconoimc or industry factors," the lawsuit alleges. ■