Will Shareholder’s Lawsuit Affect BlackBerry Ltd (NASDAQ:BBRY) Sale?

Posted by Chris Bell October 8, 2013 0 Comment 736 views

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.

Shareholder lawsuit

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.

About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

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