More woes continue to hound the Waterloo, Ontario-based BlackBerry after a shareholder filed over the weekend a class action lawsuit against the troubled tech firm and two executives. The shareholder charged them with inflating the stock price by providing misleading financial information of prospects of the firm's BlackBerry 10 smartphone line.
Marvin Pearlsen filed the lawsuit in the Manhattan federal court on behalf of shareholders who purchased BlackBerry stock between Sept 27, 2012 and Sept 20, 2013. It was during the second date that BlackBerry disclosed having to writedown between $930 million and $960 million because of unsold BlackBerry 10 units.
He named as respondents BlackBerry, its chief executive officer, Thorsten Heins, and chief financial officer, Brian Budulka.
In the lawsuit, Mr Pearlsen said, "In reality, the BlackBerry 10 was not well-received by the market, and the company was forced to ... lay off approximately 4,500 employees totaling approximately 40 percent of its total workforce."
Announcement of the writedown caused BlackBerry's share prices to tumble down 24 per cent to $8.01 on Sept 25 from $10.52 on Sept 19.
But news of possible buyers for the financially distressed firm caused a 4 per cent rise in BlackBerry's share price on Monday, surpassing the $8 mark after news on Friday that the company is talking with Cisco Systems, Google and SAP about selling BlackBerry, although it has also been reported to selling to Fairfax.
BlackBerry shares were trading on the Nasdaq at $8.05 before the bell on Monday from Friday's closing price of $7.69.