[Shlooky]

The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company's true financial condition, business and prospects. Specifically, the complaint alleges that: (a) the Company failed to inform investors that its aging product line and inability to introduce new products to the market was negatively impacting the Company's business and margins; (b) due to execution issues, product delays, and lackluster product launches, defendants' knew that shipments of Blackberry smart phones would be down and inventory would be up; and (c) as a result of the foregoing, defendants' statements regarding the Company's financial performance and expected earnings were false and misleading and lacked a reasonable basis when made.

News Sources - The Globe and Mail

Not good, especially at a time like this. All the best RIM

[kbf0402]

sounds like somebody is pissed they lost money on RIM. they issued an earnings report warning that revenue was going to be less than anticipated last qrtr. if i recall i believe they revised their target eps and lowered it citing increased competition and slowing sales. why is this any surprise?

[lnichols]

Hard to prove that that the CEO's were being malicious and not just dumb! Unless they have e-mails of them saying they are going to lie to investors, or their is some sort of accounting scandal inflating the numbers, I don't see this going anywhere. I mean the company is growing, has met or exceeded market expectations and their own forecasts up until possibly this Thursday, but all the analysts have beat the stock down after every call.

[Rooster99]

sounds like somebody is pissed they lost money on RIM. they issued an earnings report warning that revenue was going to be less than anticipated last qrtr. if i recall i believe they revised their target eps and lowered it citing increased competition and slowing sales. why is this any surprise?

Agreed - Balsillie may have talked positive, but RIM offered lowered guidance then swallowed the bitter pill of lowering it even further. Smells like legal vulture tactics to me.

- R.

[Bla1ze]

Who?

Ya, exactly.

[pkcable]

Might help if they got their you know WHAT'S in gear and got the phones out the door!

[CranBerry413]

I read this article, and it said that this is the Second time they have tried this. Sounds like this Firm doesn't have it's facts straight.

Posted from my CrackBerry at wapforums.crackberry.com

[Economist101]

I read this article, and it said that this is the Second time they have tried this. Sounds like this Firm doesn't have it's facts straight.

Perhaps you skipped this line: "That action was voluntarily dismissed, without prejudice, on May 31, 2011." This doesn't mean the suit is legit, but "voluntarily dismissed" means the plaintiff withdrew the action on their own. Therefore, nothing about the strength of the underlying facts can be inferred from the withdrawal.

[CranBerry413]

Perhaps you skipped this line: "That action was voluntarily dismissed, without prejudice, on May 31, 2011." This doesn't mean the suit is legit, but "voluntarily dismissed" means the plaintiff withdrew the action on their own. Therefore, nothing about the strength of the underlying facts can be inferred from the withdrawal.

Actually, I didn't skip that line. A Voluntary withdrawal says one of 2 things:

1) I don't have enough proof to win this case.
2) I don't have enough money to fight this case.

Of course there could be any number of other bizarre things that could be thought up, but bottom line is, they weren't confident in their chances.

You can feel free to believe what you want.

Posted from my CrackBerry at wapforums.crackberry.com

[Rooster99]

Actually, I didn't skip that line. A Voluntary withdrawal says one of 2 things:

1) I don't have enough proof to win this case.
2) I don't have enough money to fight this case.

Of course there could be any number of other bizarre things that could be thought up, but bottom line is, they weren't confident in their chances.

You can feel free to believe what you want.

Posted from my CrackBerry at wapforums.crackberry.com

There is an additional possibility - "I didn't get ready in time."

They may be ready now. Time will tell.

- Rob.

[TheScionicMan]

Common shakedown maneuver for any company that doesn't make as much as some analyst assumed they would. There's another suit of the same nature, IIRC.

I worked on these all the time when I was a paralegal. It will settle before it goes to trial. Doesn't really say anything about the company, its just a legal loophole that some firms make a living doing.