News Column

Stockholder Sues Nokia Over Poor Performance

May 4, 2012

A stockholder sued the Finnish mobile phone manufacturer Nokia before a US court, complaining that the company is losing ground in the booming smartphone business.

The plaintiff demanded compensation for the drop in the value of Nokia stock for him and other investors in the class action suit. No specific amount was mentioned in the complaint.

The complaint was filed Thursday and become public on Friday, cpontributing to a further drop in share value.

"Nokia is reviewing the allegations contained in the complaint and believes that they are without merit. Nokia will defend itself against the complaint," Nokia said in a statement posted on its website.

The plaintiff Robert Chmielinksi bought Nokia stock late last year, with the self-declared hope that the former global mobile phone market leader would manage to stop the downward trend with the new Windows Phones.

However, that did not happen: Nokia lost 929 million euros (1,216 million dollars) at the start of the year, and the launch of its much-vaunted rescue phone, Lumia 900, was undermined by a software problem.

Chmielinksi accused Nokia chief Stephen Elop of having sugarcoated the firm's situation, which according to him amounts to fraud.

Source: Copyright 2012 dpa Deutsche Presse-Agentur GmbH

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