Nokia have to face U.S. Class Action Suit due to misled investors case. TALLINN, Estonia (Dow Jones)–Nokia Corp. (NOK) Friday said it will defend itself against a class action suit brought against the company in the U.S., alleging the Finnish handset maker has misled investors.
The class action was filed by U.S.-based law firm Robbins Geller Rudman & Dowd LLP on Thursday at a district court in New York.
Robbins Geller said in a statement that Nokia has misled investors by claiming that its transition to using Microsoft Corp.’s (MSFT) Windows Phone operating systems for its smartphones would halt the company’s deteriorating position in the smartphone market.
“It did not. This became apparent on April 11, 2012, when Nokia disclosed that its first-quarter performance would be worse than expected,” said Robbins Geller.
The law firm added Nokia and certain officers and directors have violated the U.S. Securities Exchange Act of 1934. Nokia said it is reviewing the suit, adding however that it believes that the allegations “are without merit” and that it will defend itself against the complaint. Lawyers at Robbins Geller weren’t immediately available for further comment Friday.
Shares in Nokia ended 10.5% lower Friday at EUR2.39.