BlackBerry Wins Dismissal of U.S. Lawsuit Over BlackBerry 10

BlackBerry Ltd (BB.TO) (BBRY.O) on Friday won the dismissal of a U.S. lawsuit accusing it of fraudulently inflating its stock price by painting a misleadingly upbeat picture of the prospects for its BlackBerry 10 smartphone line. The lawsuit was filed in October of 2013.

U.S. District Judge Thomas Griesa in Manhattan said the plaintiffs failed to plausibly allege that BlackBerry and top officials made material misrepresentations or omissions, or intended to defraud them.

The lawsuit seeked to represent thousands of shareholders who purchased BlackBerry stock from Sept 27, 2012, to Sept 20, 2013, a period in which it alleges executives misrepresented the state of BlackBerry’s operations.

BlackBerry has faced numerous other class action lawsuits in the past.

In 2011, a US judge threw out a lawsuit claiming executives of the company, then known as Research In Motion, misled investors on its financial condition and the prospects for its devices, which included the failed launch of its PlayBook tablet. The case is being appealed by the plaintiffs.

S: Reuters

S: FirstPost