Feeds

Investor lobs sueball at BlackBerry, says it 'misled' shareholders

Class action claims execs shouldn't have talked up BB10

Top 10 endpoint backup mistakes

A BlackBerry shareholder has filed a lawsuit accusing the company and its chief exec and CFO of inflating its share price with unrealistic promises about BB10, leading to thousands of investors getting burnt.

The suit was filed in federal court in Manhattan, New York, by one Marvin Pearlstein, in the names of "thousands" of investors who had bought BlackBerry shares over the year between September 2012 and last month. The filing alleges that BlackBerry CEO Thorsten Heins and CFO Brian Bidulka "misled" investors with statements in a 27 September press release that said the company was on the road to recovery and that the new BlackBerry 10 mobile OS would prove popular.

Lack of precognition is not a crime, but the claim asserts that executives "published a series of materially false and misleading statements" spurring the public into buying shares before prices collapsed following the firm's 20 September admission that things were going pear-shaped.

Lawyers will obviously enjoy crawling over the wording, but at a first read-though, it looks as though Pearlstein's claims are based on two assertions regularly repeated by BlackBerry during the period – that BB10 (the new mobile OS based on QNX) would be terribly popular, and that this would lead to a resurgence in the popularity of the company's products and services.

BB10 was certainly a contender. On devices it's a very nice platform and arguably better than the competition, but only a bit better - when it needed to be spectacularly better to make up the ground lost.

According to recent reports, BlackBerry is currently being given the once-over by several companies who wish to buy its parts or swallow the whole. ®

A new approach to endpoint data protection

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?