Class Action Lawsuit filed against Nokia because the Windows Phone plan is failing

elopfinger

Nokia’s decision to go with Windows Phone has resulted in the company’s stock price tanking, their cash on hand to dwindle, their market share to collapse, and investors have frankly had enough of putting up with Stephen Elop’s bullshit. Yesterday a class action lawsuit was filed in New York that … well, just read what the lawyers have to say:

“The complaint alleges that during the Class Period, defendants told investors that Nokia’s conversion to a Windows platform would halt its deteriorating position in the smartphone market. It did not. This became apparent on April 11, 2012, when Nokia disclosed that its first quarter performance would be worse than expected. Nokia expected its first quarter 2012 non-IFRS Devices & Services operating margin to fall by 3%, and projected first quarter 2012 Devices &
Services net sales of €4.2 billion. It also disclosed a glitch in its newest Windows offering – the Lumia 900. Nokia had to immediately offer customers an automatic $100, making the phone essentially free.

As a result of this disclosure, the price of Nokia’s American Depositary Shares (“ADRs”) dropped over 16% in a single day.

Plaintiff seeks to recover damages on behalf of all purchasers of Nokia publicly traded securities during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.”

Basically a bunch of people who bought Nokia shares are upset that Nokia is going through a transitionary period. We don’t blame them for being ticked off. Will this lawsuit result in anything actually happening? Probably not. All signs point to Nokia sticking to their plan until at least the first half of 2013. After that, it’ll be time to reassess the situation and see if the Finnish handset maker should have gone with Android all along.

This will be fun to watch.

  • Anonymous

    errr
    WTF i hate these lawsuits. Buying stock is nothing short of gamboling.

     

    Why not sue apple cause they had a good earnings and the
    stock price did not rise to 700

     

    Basically you’re a sore loser. Also there are enough sore
    losers to do a class action.

  • http://www.rickycadden.com/ Ricky Cadden

    LOL. Isn’t this the whole point of the stock market? You could come out ahead, but you could also lose money?

    • http://www.intomobile.com/ Stefan Constantinescu

      precisely.

    • http://twitter.com/marionegroponzi marionegroponzi

      not if somebody (e.g. the CEO) is trying to get the share price down for other reasons (e.g. to make Nokia buyable).

  • Anonymous

    The author is always all out against Windows Phone and Microsoft in general, this is not new. Unprofessional with a biaised touch.

    Nokia Lumia received great Momentum and has been in the top best sellers list in the US since its release.

    A transition doesnt happen overnight too!

    As a developer, i find it to be a real joy, painless, to develop on Windows Phone. Also, i really like the UI/UX and performances, so this is my main Mobile OS i use everyday since november 2010.

    I’ll continueto own competitiors devices like Android and iOS to monetize my effort tho. Windows Phone is still my best choice over anything else.

  • http://www.facebook.com/prasad.tiruvalluri Prasad Tiruvalluri

    Are these the same guys? Looks like heavy weight guys. They seem to have a good record.

    http://en.wikipedia.org/wiki/Coughlin_Stoia_Geller_Rudman_and_Robbins

  • Anonymous

    The Nokia Lumia 900 is the second best selling phone on AT&T for the month of April according to Canaccord Genuity. First place was the iPhone.

  • http://www.facebook.com/people/Atty-Halmágyi/100001770630008 Atty Halmágyi

    Poor Nokia, it’s sad that they’re going down. They should do something as soon as possible. If not, Nokia will be sold!!!

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  • http://www.facebook.com/people/Gregory-Newman/100001803717276 Gregory Newman

    I felt that when Mr Elop became Head of Nokia that they should have sold Windows 7 series smart phones and at least one good Android smart phone to tap into the Popularity of the Android market which is a money Maker. This suite comes at the wrong time because Nokia Windows 8 smart phones are going to have the High tech components in them that will enable them to compete with the iPhone and Any Android smart phone on the market. It would cost Nokia time and hundreds of millions of Dollars to design and have a outside company make Android smart phones for them to sell and there is no sure bet that People would even buy a Nokia android smart phone. Nokia without Question now Makes the best Windows smart Phones and is the leader of Windows OEM smart phones makers. The Nokia 900 is selling very well in the states I tried to buy one 2 days ago on Amazon they did not have any they put me on back order. Hey Folks Nokia is on a Roll now. no doubt Nokia has already put new components in the Nokia lumia 900’s body and are testing Windows 8 on it there are alleged shots of the Nokia Lumia 900 running Windows Phone 8 so look out folks Nokia’s best is yet to come. this is a bad time for Windows Smart phones best OEM smart phone maker to stop now that would really hurt Windows smart phones development. Wow what a bummer.

  • Anonymous

    Android? Nah…. They just didn’t need to go 100% in on WP, that’s all….
    Focus should’ve remained on Maemo6(MeeGo-Harmattan)->MeeGo transition for top-end*, & Symbian pushed to mid-end, as 1st planned.**
    Eventually Symbian would be phased-out, maybe a bit more quickly than 2016, esp. if WP was also kept for top to mid end.

    But it needn’t have been totally trash-talked/degraded the way it has by Elop & associates over the past 15mth+
    It could’ve been handled with more subtlety, & they could’ve done far more to instil confidence that they’re still committed to Qt.
    They’ve constantly alluded to that, but backed it up with very few actions, it doesn’t seem to be priority, despite what they claim.

    The deadline for the first two Maemo 6x ph’s should’ve been Sep 2011, & that would’ve been met.
    The next shipping deadline for the 3rd and final Maemo 6x device should’ve been Mar 2012.
    If that was looking unlikely, & there wasn’t a string of devices in the pipeline for MeeGo proper in 2H of 2012 (x86 & ARM).
    “THEN” there would’ve been good reason to totally trash Maemo/MeeGo transition, & go all in on WP-only for the top to mid end.

    *which hadn’t even started b4 resources were cut markedly!
    **w/1 final S^3 top-end in the form of the 808PV

  • Anotherfakename

    No good doing class action suits, get the big ‘investors’ together and kick Elop and the rest of the board out! They are all responsible for the ‘strategy’ and it is clearly failing dismally.  Worse the company has ditched its ‘one way out’ of this strategy and jumped on the back of the one lame horse that has 2 legs and no heartbeat at all in the hope of flogging this dead horse to the finish line.
    If the ‘investors’ want to salvage anything at all they need to act quickly, if not their company is worthless. OF course they won’t.

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