Nokia sued by angry investors

Nokia has been sued by angry investors this week over the sad turn of events in the company's fortunes over the past year.

Robbins, Geller, Rudman & Dowd, the New York-based law firm, is in charge of the class action suit which names the company, CEO Steven Elop and CFO Timo Ihamuotila.

The suit itself claims that Nokia failed to "halt its deteriorating position in the smartphone market" and withheld that info from its shareholders. When Nokia first announced Windows Phone devices last October, the company's stock was above $7 per share. As of today, the price is 57 percent lower, at $3.15 per share.

Reads the suit: "Two million Lumias in three months is not encouraging; that's the same number that the Nokia N97 (a product which was a large-scale failure) shipped back in 2009, in first three months. Today, if you bring a hit product to market, 5 million in three months should not be a problem (Samsung Galaxy S2). In addition, 10 million Symbian smartphones shipped was expected, but the 16 per cent gross margin in smartphones says these phones were shipped with big discounts in order to defend market shares."

Nokia, which at one time controlled over 60 percent of the global smartphone market with its Symbian platform, shut down the platform after iOS and Android were released, and now controls less than 5 percent.

Written by: Andre Yoskowitz @ 4 May 2012 21:17

xtago

While I agree with what has happened I don't about the court case.

But I just can't understand why nokia didn't keep the UIQ OS and work it into something great it's so much faster and smoother than IOS and Android.

It really just needs the hardware to start getting it out there.

If Nokia did come out with a new UIQ phone with the right hardware I would buy one.

4.5.2012 21:21 #1

xproject6 (unverified)

Nokia sued by Rovio?

4.5.2012 21:43 #2

KillerBug

Originally posted by xtago: While I agree with what has happened I don't about the court case.

But I just can't understand why nokia didn't keep the UIQ OS and work it into something great it's so much faster and smoother than IOS and Android.

It really just needs the hardware to start getting it out there.

If Nokia did come out with a new UIQ phone with the right hardware I would buy one.
They gave up on UIO because it was downright useless. Sure, it made a decent feature phone and the calculator was very responsive...but an Apps market is a vital part of any modern mobile OS and they didn't have a decent one. The fact is that the people who bought those phones at massive discounts got screwed and now they are stuck with useless semi-smartphones.

I don't see the logic in stockholders suing a company that they hold stock in...if the company loses they just take the settlement out of the stock. Anyway, these people should only be mad at themselves for keeping the stock. Everyone knew that there was nothing that anyone could do to make Windows Phone a success, and Nokia staked everything on it. It isn't like they hid this; they came right out and said it.

I fear it is too lake for Nokia. They could have snagged a big chunk of the Android market about a year ago...and they might even have a sliver of a chance if they released something like the Note, but on Verizon...but they are still too mismanaged to get anything like that going before HTC or Samsung release a Verizon version of the Note.

5.5.2012 10:10 #3

LordRuss

Originally posted by KillerBug: I don't see the logic in stockholders suing a company that they hold stock in...if the company loses they just take the settlement out of the stock. Anyway, these people should only be mad at themselves for keeping the stock. Everyone knew that there was nothing that anyone could do to make Windows Phone a success, and Nokia staked everything on it. It isn't like they hid this; they came right out and said it.

I fear it is too lake for Nokia. They could have snagged a big chunk of the Android market about a year ago...and they might even have a sliver of a chance if they released something like the Note, but on Verizon...but they are still too mismanaged to get anything like that going before HTC or Samsung release a Verizon version of the Note. Exactly... Just more illogical behavior following suit of an illogically mismanaged company. "I have a headache, let's cut off my head..." Like that's going to cure the problem. These idiots are supposed to be professionals & they're behaving like rank amateurs.

There has YET to be a Windows phone to ever be of any account & with Windows constantly showing up to the party stupid late in the game every time it's likely they'll ever make anything of themselves. Not to mention, EVERY time they show up they only seem to fall in the pool, piss in it & then run away while everyone tries to guess who made the mess.

These idiots need to sell their stocks like adults, take their loss & act like professional adults. What? Like they're too good for the economy to effect them too?

http://onlyinrussellsworld.blogspot.com

5.5.2012 14:57 #4

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