Class action lawsuit accusing BlackBerry of misleading investors heads to lawsuit

U.S. judge clears class action lawsuit claiming BlackBerry Ltd. defrauded investors by misleading them about the success of its BB10 devices.

New York Judge Colleen McMahon this week ruled the case against Waterloo, Ontario. tech firm by buyers of BlackBerry common stock may head to trial, likely in September or October.

Leading plaintiffs Todd Cox and Mary Dinzik filed the class action lawsuit in 2013, claiming that BlackBerry had made “pink” public statements that hid a “much less rosy truth” about their products.

The complainants further allege that BlackBerry prematurely recognized revenue for BB10 devices in order to maintain its inflated inventory.

BlackBerry dismissed several of the complainants’ claims and requested their dismissal because it alleged that the complainants did not raise any issues of fact that could be tried during the period covered by the case.

McMahon dismissed several of the plaintiffs’ claims due to the time that had elapsed since shareholders objected, but found that “genuine questions of material fact” remained in dispute, so that other claims can be continued.

This report by The Canadian Press was first published on January 4, 2022.

Companies in this story: (TSX: BB)