Blackberry facing lawsuit accusing smartphone company of misleading investors
Blackberry is facing a class action lawsuit alleging the company misled investors about its future.
Action: Shareholder Marvin Pearlstein has filed a lawsuit
According to papers filed by shareholder Marvin Pearlstein in Manhattan on Friday, Blackberry misled investors last year when it claimed it was “progressing on its financial and operational commitments”.
The complaint represents thousands of shareholders who bought Blackberry stock between 27 September 2012 and 20 September 2013.
Blackberry announced plans last month to shed 40 per cent of its global workforce, 4,500 employees, as the smartphone brand struggled to compete in the marketplace.
The Canadian company then agreed to be bought out for $4.7bn by a group led by its biggest shareholder, Fairfax Financial Holdings, for $9 a share.
The complaint from Pearlstein claims that Blackberry’s 25 per cent share price drop since loss announcements in September was a direct result of the misrepresentation of the company’s financial state to investors.
Blackberry’s chief executive, Thorsten Heins, and chief financial officer, Brian Bidulka, have been named as defendants in the lawsuit.