A class action lawsuit was filed not too long ago against RIM claiming that the company misled investors regarding its financial condition and business prospects. We’re not sure exactly what’s going on here or what the law says about these investments, but it seems like the recent stock plunge has something to do with it. Chances are that an investment firm has lost a lot of money in RIM stock and is looking to mitigate that loss with a lawsuit payback. What investors should be doing is not reacting so emotionally to the market. Smartphone sales are up globally and RIM is well positioned to accommodate this growth. So Relax.
Waterloo, ON – Research In Motion Limited (“RIM”) (Nasdaq: RIMM; TSX: RIM) today confirmed 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 lawsuit alleges that during the period from December 16, 2010 through April 28, 2011, the Company and certain of its officers made materially false and misleading statements regarding the Company’s financial condition and business prospects, and seeks unspecified damages on behalf of an alleged class of purchasers of the Company’s common shares during this period. RIM believes that the allegations are without merit.