Thaindian News

Toronto, May 28 (IANS) BlackBerry maker Research In Motion (RIM) Friday confirmed a lawsuit seeking “unspecified damages” has been filed against it in a US court for allegedly keeping investors in the dark about its earning prospects.

In a statement, the BlackBerry maker said “it intends to vigorously defend against a purported class action lawsuit filed against the company and certain of its officers in the United States District Court for the Southern District of New York.”

Describing the allegations as “without merit,” RIM said the lawsuit “seeks unspecified damages on behalf of an alleged class of purchasers of the company’s common shares during this period.”

The lawsuit has been filed by the Atlanta firm Holzer Holzer & Fistel which earlier this week claimed that it is
investigating whether RIM misguided its shareholders about problems in replacing its aging handset line-up.

“The investigation focuses on whether a series of statements made between December 16, 2010 and April 28, 2011, inclusive, regarding RIM’s business, its prospects and its operations were materially false and misleading at the time they were made,” the US law firm said.

Asking those who bought RIM common shares between December and April to come forward, the law firm said, “Specifically, the investigation focuses on, among other things, whether the company (RIM) knew but failed to adequately disclose that it was experiencing problems associated with an aging product line which were negatively impacting RIM’s business and margins.”

RIM stock slipped slightly on the Toronto Stock Exchange Friday and closed at $42.60.

When the Canadian wireless giant slashed its quarterly outlook April 28 on lower sales of high-end devices, its stock tanked more than 14 percent and has not yet recovered.

Once a dominant player in the smart phone market in North America, RIM has lost its place to Apple’s iPhone and Google Android devices.