Nokia to Defend Itself Against Investor Lawsuit

­Nokia says that it will vigorously defend itself from a US based class action lawsuit which claims that the company mislead investors regarding handset production delays and price cuts. The class action complaint against Nokia was filed in the US District Court for the Southern District of New York.

In a statement, the company said that it " has reviewed the allegations contained in the complaint and believes that they are without merit,"

The complaint alleges that between January 24, 2008 and September 5, 2008, Nokia failed to disclose material adverse facts about the Company's true financial condition, business and prospects. Specifically, the complaint alleges that Nokia failed to disclose: that the positive statements about Nokia's new product launches were without reasonable basis given the component supply shortages and manufacturing problems Nokia was then encountering.

The complaint also claims that Nokia was losing market share due to intense price cuts by competitors; and that while it stated they expected the overall industry average selling price ("ASP") to decline in 2008, they failed to disclose Nokia had cut its ASPs to maintain its market share due to severe price competition.

On September 5, 2008, Nokia issued a press release announcing its outlook for its mobile device market share for the third quarter of 2008. The Company cited in a conference call later that day a production glitch with a mid-range device and aggressive price cuts by some of its rivals, particularly at the low end of the market. In response to these statements, the price of Nokia ADSs dropped approximately 8%, to $20.62, on heavy volume.

The law firm of Coughlin Stoia Geller Rudman & Robbins filed the suit in New York on behalf of people who bought Nokia's American Depository Shares.

Posted to the site on 8th February 2010