Nokia is being
sued by investors who claim the company hid production delays in 2008.
The investors claim the cover up, combined with a price-cutting strategy, caused a fall in mobile phone prices and
The case - City
of Roseville Employees’ Retirement System v.
Nokia Corp – has been brought on behalf of buyers of Nokia’s American Depository
Receipts (ADRs). It was filed last week in New
York’s federal court. The investors claim Nokia
became aware of production delays with its mid priced phones in early 2008.
claim Nokia ‘hid this fact from investors and instead highlighted the company’s
expected launch of several new phones.’
same time, as competition intensified, Nokia began slashing prices, which, combined
with the production delays, cut operating margins to 18.6 percent in the third
quarter of 2008 from 21.2% in the first quarter, the claimants state.
fell to $20.62 from $38.25, according to the claimants. ADRs are issued by U.S. banks to
allow investment in non-U.S. companies. Nokia’s ADRs, each representing one
ordinary share, fell by around 35 cents to $13.39 in New York Stock Exchange composite
trading last week.
Nokia said it was looking into the claim.