BlackBerry to settle lawsuit over defunct smartphone OS

BlackBerry plans to settle a greater than eight-year-old lawsuit claiming it defrauded shareholders by inflating the success and profitability of its long-discontinued BlackBerry 10 smartphones.

US district choose Colleen McMahon in Manhattan federal court docket granted a request by attorneys on Wednesday for BlackBerry and the shareholders to adjourn their deliberate trial so they may negotiate a preliminary settlement within the class motion.

Jury choice had been scheduled to start on Thursday. Any settlement would require the choose’s approval.

Lawyers for the shareholders didn’t instantly reply to requests for extra remark. BlackBerry and its regulation agency didn’t instantly reply to related requests.

While the BlackBerry 10 gained constructive critiques from critics, it by no means caught on with the general public, which most popular Android-based smartphones and Apple’s iPhones.

This led to BlackBerry’s 2016 determination to cease making telephones. The Waterloo, Ontario-based firm now focuses on cybersecurity.

Shareholders accused BlackBerry of concealing BlackBerry 10’s true gross sales prospects in public statements throughout 2013, leading to an inflated share value.

The lawsuit started in October 2013. Other defendants embrace CEO Thorsten Heins, former chief monetary officer Brian Bidulka and former chief authorized officer Steve Zipperstein.

Lawsuits accusing corporations of deceptive shareholders are widespread within the US, however few go to trial. From 1997 to 2021, lower than 1% of federal securities class actions went to trial, whereas most had been settled or dismissed, based on Cornerstone Research.  — Jonathan Stempel and Jody Godoy, (c) 2022 Reuters

Source hyperlink

Leave a Reply

Your email address will not be published.