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.