Nokia: Class Action Complaint Dismissed (Chmielinski v. Nokia Corporation)December 13, 2012 1 Comment
Today, Nokia announced that a class action suit against them that was filed earlier this year has been dropped. The case, entitled Chmielinski v. Nokia Corporation is explained below.
INTRODUCTION AND OVERVIEW (Stanford)
This is a class action for violations of the anti-fraud provisions of the federal securities laws on behalf of all purchasers on any U.S. exchange, or where title passed within the U.S., of the publicly traded securities of Nokia Corporation (“Nokia” or the “Company”) between October 26, 2011 and April 10, 2012 (the “Class Period”), who were damaged thereby (the “Class”).
Nokia provides telecommunications infrastructure hardware, software, and services worldwide. During the Class Period, defendants told investors that Nokia’s conversion to a Windows platform would halt its deteriorating position in the smartphone market. It did not. This became apparent on April 11, 2012, when Nokia disclosed that its first quarter performance would be worse than expected. Nokia expected its first quarter 2012 non-IFRS Devices & Services operating margin to fall by 3%, and projected first quarter 2012 Devices & Services net sales of €4.2 billion. It also disclosed a glitch in its newest Windows offering – the Lumia 900. Nokia had to immediately offer customers an automatic $100, making the phone essentially free.
As a result of this disclosure, the price of Nokia’s American Depositary Shares (“ADRs”) dropped over 16% in a single day.
Class action complaint filed against Nokia in May 2012 has been dismissed
Stock exchange release
December 13, 2012 at 13.00 (CET+1)
Espoo, Finland – Nokia Corporation announced on May 4, 2012 that it was aware of the filing of a securities class action complaint naming Nokia Corporation as a defendant. Also two of Nokia’s executives were named as defendants. The case, entitled Chmielinski v. Nokia Corporation, was filed in the U.S. District Court for the Southern District of New York on May 3, 2012. After further investigation, the plaintiffs have agreed to dismiss the case against all defendants without any compensation being paid to any plaintiff or their counsel by any defendant. The complaint has been withdrawn and dismissed with prejudice by the court.
About Nokia Nokia is a global leader in mobile communications whose products have become an integral part of the lives of people around the world. Every day, more than 1.3 billion people use their Nokia to capture and share experiences, access information, find their way or simply to speak to one another. Nokia’s technological and design innovations have made its brand one of the most recognized in the world. For more information, visit http://www.nokia.com/about-nokia.