News by Andrew Kameka on Friday April 12, 2013.
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Analysts claiming that the BlackBerry Z10 is returned more often than it is kept caused BlackBerry's stock to take a nearly 8 percent dive yesterday, and the Canadian company will soon ask U.S. and Canadian regulators to investigate what it calls "false and misleading reports."
Analysts at Detwiler Fenton & Co. issued reports yesterday claiming that BlackBerry Z10 returns exceed sales and are indicative of a weak launch in the U.S. The analysts claimed that they obtained information from independent dealers who said that sales of the Z10 are poor, which led to BlackBerry falling 7.8 percent at the close of the stock market yesterday.
BlackBerry called the reports false and claimed that returns are on par with other premium smartphones from rival companies. CEO Thorsten Heins says sales are actually in line with expectations or exceeding BlackBerry's projections in some regions. The company has called for a securities investigation into the matter because it believes these reports may be deliberate releases of misinformation meant to weaken BlackBerry's stock.
BlackBerry Chief Legal Officer Steve Zipperstein issued the following statement:
"These materially false and misleading comments about device return rates in the United States harm BlackBerry and our shareholders, and we call upon the appropriate authorities in Canada and the United States to conduct an immediate investigation. Everyone is entitled to their opinion about the merits of the many competing products in the smartphone industry, but when false statements of material fact are deliberately purveyed for the purpose of influencing the markets a red line has been crossed."
Formal requests will be given to U.S. and Canadian regulators next week.source: BlackBerry
Andrew is based in Miami, Florida.