Will Shareholder’s Lawsuit Affect BlackBerry Ltd (NASDAQ:BBRY) Sale?
Over the past few months, BlackBerry Ltd (NASDAQ:BBRY) has been in the limelight for all the wrong reasons. The company was once a dominant on the mobile technology landscape and a pioneering force in this niche for a long time and then came the downfall. Irrespective of what the company tried and how much it innovated, it has been unable to rake in the volume of market share that it used to get without any effort at one point of time. Today the company is on the block and Fairfax has already put forth its bid for BlackBerry Ltd (NASDAQ:BBRY). Other companies like Google and Cisco seem to be the other interested buyers.
The imminent sale is not the only worry that the company has to face. A shareholder has now filed a class-action suit against the company. The shareholder’s claim is that BlackBerry Ltd (NASDAQ:BBRY) misled its investors about its future. There was also a mention that the company was not transparent about the status of the Blackberry 10 smartphone devices against its rival devices.
This lawsuit seeks to represent the stakeholders who bought the company’s shares from 27 September 2012- 20 September 2013. The allegation is that this is the time frame in which the company’s executives misconstrued the situation and the conditions that the company was facing. Last year, BlackBerry Ltd (NASDAQ:BBRY) said that it was progressing on its operational and financial commitments. The company also said that developers had received the Blackberry 10 platform very well.
Monday’s trading session
In Monday’s trading, BlackBerry Ltd (NASDAQ:BBRY) rose by 3.64%. The opening price of the shares was $7.97, which climbed to an intraday high of $8.07 and dipped to a close of $7.97. Approximately 23.09 million shares were traded on Monday while an average volume of 29.58 million shares were traded over a 30 day period.