Class-action suit filed against Nokia in New York

Investors' lawyers say company withheld important information

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The mobile telephone giant Nokia faces a class-action suit in the United States. The suit was filed on behalf of investors on Friday last week in a US district court in New York. It concerns statements given out by the company in January and September of 2008 on the production volume of mobile telephones.
      Nokia issued a statement on the lawsuit, saying that the accusations are without merit. The company plans to fight the demands by all means available.
     
According to the suit, Nokia failed to disclose its shortage of components and its production problems in the early part of 2008 when it presented its new products.
      The plaintiffs also say that Nokia failed to disclose a decline in its market share as its competitors were slashing their prices, and as its average sales prices were declining.
     
In September 2008 Nokia reduced its estimate on how its market share was developing.
      According to the company, the declining market share was based on a tactical decision not to respond to the aggressive pricing of some competitors, including the general competitive situation on the market, including emerging markets, and the slower arrival on the market of mobile devices in the medium price range.
     
The class-action suit is being pursued by the law firm Coughlin, Stoia, Geller, Rudman & Robbins on behalf of the pension fund of the municipal employees of the city of Roseville.
      Nokia has faced similar class-action suits in 1995 and 2004. Both times the suits did not go to court, because they were rejected as being without merit.


Links:
  Press release: Nokia´s comment on class action complaint February 08, 2010

Helsingin Sanomat