Feeds

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

Class action claims execs shouldn't have talked up BB10

The essential guide to IT transformation

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.