Nokia hit with investor class-action

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Nokia hit with investor class-action

Dylan Bushell-Embling  |   May 07, 2012
telecomasia.net
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A law firm has filed a class-action lawsuit on behalf of Nokia investors, accusing the company of misrepresenting the impact its deal with Microsoft would have on its market position.
 
The suit, submitted to a US court, claims that Nokia falsely painted the deal as key to arresting the company's declining smartphone market share, court documents excerpted by SlashGear show.
 
Nokia's warning last month that it expects device operating margins to decline 3% in Q1 proves that claims about the benefits of the deal were false, the complaint asserts.
 
The warning brought the price of Nokia ADRs down 16% in a single day, according to the lawsuit. Nokia subsequently reported http://www.telecomasia.net/content/nsn-pulls-nokia-red a roughly $1.3 billion operating loss for the quarter.
 
The class-action suit is open to any investor who bought Nokia stock after the vendor launched its first Windows Phone handset in October 2011, but before Nokia's warning on April 11, 2012.
 
But in a statement, Nokia has dismissed the claims made in the suit.
 
“Nokia is reviewing the allegations contained in the complaint and believes that they are without merit,” the statement reads. “Nokia will defend itself against the complaint.”
Dylan Bushell-Embling
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