Robbins Geller Rudman & Dowd LLP has filed a class action lawsuit against Research in Motion. Submitted to the US District Court, the suit is filed on behalf of RIM stockholders who purchased shares between December 16th, 2010 and April 28th, 2011.
The suit alleges that RIM failed to disclose material adverse facts about the company’s true financial condition, business and prospects. Specifically, the suit claims that the company failed to inform investors of its aging product line and inability to introduce new products, its product delays and lacklustre product launches due to execution issues, and supplying investors with false and misleading company financial performance and expectations.
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RIM announced today that it intends to “vigorously defend against a purported class action lawsuit filed against the Company and certain of its officers in the United States District Court for the Southern District of New York.” The company claims that the allegations are unfounded and without merit.
Robbins Geller, the law firm representing the suit, is a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington D. C, Philadelphia and Atlanta. Active in major litigation pending in federal and state courts throughout the US, Robbins Geller has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies.
What investors are clearly upset about is RIM’s performance in the past year as well as its BlackBerry development. Part of this issue was the unspectacular release of the BlackBerry Playbook, which RIM had expected would fare better in the market.