Mobile outfit RIM is fighting off a claim from a shareholder that it has been feeding him rubbish and voilated US securities law.
It’s not been a good year for RIM. Firstly the company was very publicly forced to bow down to Indian authorities when it came to email encryptions and now it’s being sued.
In this case the disgruntled investor claimed that RIM’s financial team failed to give him information about the company’s bad financial situation. He claims that by the company feeding him and others misleading revenue forecasts the company violated US securities law. He also claims that the company gave higher projections before pulling back revenues.
The moaning investor has not been named, but the lawfirm Holzer Holzer & Fistel taking his complaint says that it wants to go for a class action.
It is calling for damages for anyone who bought the stock from December 2010 to April 28, 2011, when RIM lowered its revenue forecast.
RIM failed to inform investors that its ageing product line and inability to introduce new products to the market was negatively impacting the company’s business and margins, the suit states.
RIM denies the allegations, which it has said are “without merit.” It has said that it won’t go down without a fight and will fully defend itself.
In other RIM however isn’t faring too well in the figures stake, seeing revenues slim down for its smartphones. Last week investors again went on the revolt demanding that the company came up with products to rival Apple’s iPhone and smartphones based on Google’s Android operating system.
It seems the spotlight could soon be shining on co-chief executives Mike Lazaridis and Jim Balsillie.