An upset investor filed a complaint against Nokia for its choice of Windows Phone. Robert Chmielinski, represented by Robbins Geller Rudman & Dowd LLP, is suing on behalf of all investors who purchased Nokia stock between Oct. 26, 2011, and April 10, 2012. Stephen Elop, Nokia's CEO, and Timo Ihamuotila, Nokia's CFO, are also listed as defendants.
The complaint alleges federal security laws violations by Nokia and some of its officers and directors, including Elop and Ihamuotila, specifically in regards to the Securities Exchange Act of 1934. According to the complaint, Nokia violated federal security law when it stated its Windows Phone partnership with Microsoft would halt the company's financial slide, which the complaint considers to be "false and misleading statements."
Defendants' statements set forth above were materially false and misleading because Nokia's migration to a Windows Phone platform was not going as well as represented. The Lumia 900 had a glitch which forced Nokia to offer a $100 credit and earlier Lumia offerings were not as well accepted as represented.
Filing of the complaint comes a week after Nokia was hit with two "junk" credit rating drops from separate credit rating agencies. Nokia has seen lackluster sales figures despite dominating the Windows Phone market.
The complaint was filed in the United States District Court for the Southern District of New York. Robbins Gellar Rudman & Dowd is a firm that specializes in class-action lawsuits; the company has some of the "largest recoveries in history," including a class action recovery of $7.2 billion from Enron. The company is giving potential plaintiffs 59 days from today to seek lead plaintiff status.