Nokia shareholders have lashed back at the firm’s executives with a class-action lawsuit filed on behalf of law firm Robbins Geller Rudman & Dowd. The shareholders are complaining at the lack of Nokia’s Lumia device sales, even though the company recently announced that it has sold 5 million Lumia-branded phones. “The complaint alleges that during the Class Period, defendants told investors that Nokia’s conversion to a Windows platform would halt its deteriorating position in the smartphone market,” a statement from the law firm says. “It did not. This became apparent on April 11, 2012, when Nokia disclosed that its first quarter performance would be worse than expected.”
Stephen Elop, CEO of Nokia, said during the company’s most recent earnings call that the company is still in the midst of a transition and explained that the company expects market success with its Lumia line of smartphones in the future. Still, at least one executive believes Elop is struggling with Nokia and that, by switching to Windows Phone, the company sacrificed millions in sales of its Symbian-powered devices.
According to CNET, the investors believe that there isn’t any momentum with Windows Phone. It’s a tough argument, since the company only began selling its Windows Phone devices within the last year and has yet to deliver them in mass quantities to emerging markets, where it has typically seen success. The Lumia 900 has also already exceeded AT&T’s expectations and we expect other Nokia Lumia-branded devices to launch on additional U.S. carriers in the future.
“Nokia has become aware of the filing of a securities class action complaint naming Nokia Corporation as a defendant, filed in the US District Court for the Southern District of New York on May 3, 2012,” Nokia said in a statement. “Nokia is reviewing the allegations contained in the complaint and believes that they are without merit. Nokia will defend itself against the complaint.”