Finnish mobile manufacturer Nokia has said it intends to “vigorously” defend itself against a class-action lawsuit filed against it in the state of New York by US investors.
The suit was filed by City of Roseville Employees’ Retirement System who allege the Finnish company did not disclose certain facts about its financial situation, which caused them to lose money between 24 January and 5 September of 2008.
The investors had invested in Nokia through American Depositary Shares (ADS). ADS shares are issued by US banks and are intended to smooth the process for US investors who wish to buy stakes in foreign companies.
Specifically, the suit alleges that Nokia did not disclose to investors that it was expecting a production delay in its mid-price mobile phones, including certain smart phones, in 2008.
It also claims that Nokia did not disclose that it had slashed its average selling prices in order to retain market share.
However, in a brief statement issued today, Nokia said it had reviewed the allegations contained in the complaint and that it believes they are without merit.
“Nokia intends to defend itself against the complaint vigorously,” the company said.
Nokia Finnish job cuts
Separately, Nokia announced today it intends to cut 285 jobs at its Salo plant in Finland as part of its plans to refocus the facility on the production of devices for the high-value smart-phone market.
Nokia’s Salo facility employs about 2,200 people.
Photo: US investors have filed a class-action lawsuit against mobile-phone manufacturer Nokia
Article courtesy of Businessandleadership.com