Shareholder drops class action complaint against Nokia for mis-representing Lumia sales
It seems the festive season has dropped Nokia another present. A class action law suite brought by Robert Chmielinski accusing Nokia of committing fraud between October 11, 2011 and April 10, 2012. Chmielinski claimed during that period, Nokia CEO Stephen Elop made several irresponsibly confident statements about the then-forthcoming Windows Phone 7 powered Lumia smartphones. Chmielinski asserts Elop was aware those statements were false and were not based on any business plans or projections.
Chmielinski has now dropped all charges, without any settlement or payment by Nokia.
In a brief statement Nokia said:
Class action complaint filed against Nokia in May 2012 has been dismissed
Espoo, Finland â€“ Nokia Corporation announced on May 4, 2012 that it was aware of the filing of a securities class action complaint naming Nokia Corporation as a defendant. Also two of Nokiaâ€™s executives were named as defendants. The case, entitled Chmielinski v. Nokia Corporation, was filed in the U.S. District Court for the Southern District of New York on May 3, 2012. After further investigation, the plaintiffs have agreed to dismiss the case against all defendants without any compensation being paid to any plaintiff or their counsel by any defendant. The complaint has been withdrawn and dismissed with prejudice by the court.
Possibly the 40% increase in Nokiaâ€™s share price over the last 30 days has ameliorated some of Chmielinskiâ€™s concerns, or maybe he feels Nokia is finally delivering on their promises. Be that as it may, Stephen Elop has one more reason to sleep a bit more soundly at night.