Feeds

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

Class action claims execs shouldn't have talked up BB10

High performance access to file storage

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. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.