News by Andrew Kameka on Thursday December 13, 2012.
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Nokia today announced that a class action lawsuit filed against the company for allegedly misleading comments about Windows Phone sales has been dismissed with prejudice. The case, Chmielinski v. Nokia Corporation, claimed that Nokia committed securities fraud when it told investors that Windows Phone would return the company to prominence. The plaintiff alleged that Nokia misled investors by claiming its Lumia smartphones would attract more smartphone buyers and keep the company from falling father behind Apple.
Plaintiff Robert Chmielinski, who claimed to represent the class of affected Nokia investors, has agreed to dismiss the case without being paid by Nokia. The company's announcement said:
After further investigation, the plaintiffs have agreed to dismiss the case against all defendants without any compensation being paid to any plaintiff or their counsel by any defendant. The complaint has been withdrawn and dismissed with prejudice by the court.
The decision vindicates Nokia, which said that the case had no merit when it was filed in May. Chmielinski sued the company because it chose to abandon Symbian, which was already on its way out of favor among smartphone buyers, and embrace Windows Phone. Nokia's prediction was wrong, but its forward looking statement were estimates of what would happen, not a guarantee for a particular outcome.
While the decision to release Windows Phone products may not have been a financial boon to the company, that strategic decision did not constitute investor fraud. The dismissal of the case proved that Nokia did not mislead investors in its actions or statements.source: Nokia
Andrew is based in Miami, Florida.