A U.S. shareholder lawsuit accusing smartphone manufacturer BlackBerry of seeking to fraudulently obscure its falling market position was dismissed on Friday.<\/p>\n
U.S. District Judge Richard Sullivan in Manhattan granted the company’s motion to dismiss the proposed class-action lawsuit, finding the plaintiffs failed to adequately allege that the company or various executives had made deliberate and material misstatements.<\/p>\n
Sullivan said BlackBerry clearly had failed to keep pace with rivals in developing smartphones and information technology, and “have paid a price for their mistakes by way of demotions, terminations and sizable financial setbacks.”<\/p>\n
“Nevertheless, corporate failings alone do not give rise to a securities fraud claim,” Sullivan said.<\/p>\n
David Brower, a lawyer for the plaintiffs at Brower Piven, declined comment. A spokeswoman for BlackBerry did not immediately respond to requests for comment.<\/p>\n
BlackBerry, known as Research In Motion Ltd until recently, has sought to achieve a turnaround its new Z10 smartphones after years of losing market share as consumers moved to Apple Inc’s iPhone as well as smartphones using Google Inc’s Android software.<\/p>\n
The lawsuit, filed in 2011 by investor Robert Shemian, sought to recover losses on behalf of U.S. shareholders who bought the company’s stock from December 2010 through June 2011.<\/p>\n
The lawsuit followed series of setbacks the company suffered in 2011. The complaint cites slowing sales of its aging BlackBerry phone product line, delays in releasing a new operating system and a botched launch of its first tablet.<\/p>\n
The lawsuit contended all those setbacks were known by the company and its executives, who nonetheless allegedly began misleading investors, who bought its stock at inflated prices.<\/p>\n
From February 11, 2011 to June 17, 2011, when the company announced disappointing earnings and announced layoffs, the company’s stock slid from $69.86 to $27.25.<\/p>\n
BlackBerry boosted by takeover hopes<\/strong><\/a><\/p>\n BlackBerry encouraged by Z10 sales<\/strong><\/a><\/p>\n BlackBerry 10 gets big-name music, video partners<\/strong><\/a><\/p>\n BlackBerry 10 SA launch window<\/a><\/strong><\/p>\n BlackBerry 10 in SA: more operators confirmed<\/a><\/strong><\/p>\n