A lot of people (both in the United States and Finland) have placed a lot of hope on Nokia’s choice of transitioning to Windows Phone. Who wouldn’t in lieu of Elop’s famed burning platform speech creating an essential need for Windows Phone to save Nokia from itself. The terms of the marriage between the big giants are simple:
[Adopting] This Windows platform would halt its deteriorating position in the smartphone market
It’s been a year since the marriage has been announced, and about six months since the two companies became married. In that time, Nokia has seen the lowest global market share it has ever seen since the company has been established. To many, that is a large criticism of the Nokia x Windows Phone marriage because it didn’t halt Nokia’s debilitating position. It hastened it. It hastened the market so much that a lawsuit is looming based on charges of fraud.
Robbins Geller Rudman & Dowd LLP announced a class action lawsuit on behalf of the purchasers of Nokia Corporation that charges Nokia and its directors with direct violations of the Securities Exchange Act of 1934. The firm argued that the hastening of Nokia’s debilitating market share is in direct violation of the terms of the Microsoft merger. In addition, the glitches and issues of the Lumia 900, leading to a temporary period of free devices, is costing Nokia money. The group hopes to recover damages on behalf of purchasers of Nokia.
So what does everyone think? Is there a case? I believe there is a very strong case, but I’ll hold off my thoughts for later. Tell me what you think.
UPDATE
Nokia vows to fight the charges:
Nokia has become aware of the filing of a securities class action complaint naming Nokia Corporation as a defendant, filed in the US District Court for the Southern District of New York on May 3, 2012. Nokia is reviewing the allegations contained in the complaint and believes that they are without merit. Nokia will defend itself against the complaint.
See the full press release in source 2.
via: yahoo finances
source 1: Robbins Geller Rudman & Dowd
source 2: Nokia
