Nokia Dragged to Court by Shareholder for Alleged Misleading of Investors

May 5, 2012, By Sanjeev Ramachandran

Nokia has something to worry about, it seems. A lawsuit was filed against the company in New York by Robert Chmielinski, an investor and a shareholder of the company.

The class action lawsuit was filed claiming that Nokia has misled investors by promising success of their Windows Phone.

As per Chmielinski’s claims, Nokia made false statements regarding the Windows phone Lumia’s chances of bringing more fortune to the company.

His lawyers said that during the Class Period, Nokia claimed that conversion to a Windows platform would halt its deteriorating position in the smartphone market. But Nokia’s promise to the investors was not fulfilled.

The phone-maker, in response to the filing of the lawsuit against them said that the company has become aware of the issue and is in the process of reviewing the allegations contained in the complaint.

It also said that the allegations are without any merit and the company would defend itself against the complaint.

Chmielinski’s lawyers quoted the incident of Nokia disclosing that its first quarter performance would be worse than expected in last month.

The lawyers also made reference to the well-publicized Nokia Lumia 900 “glitch”, which finally made the manufacturer to offer the customers an automatic $100 rebate in the US, making the phone “essentially free”.

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