Vu Tran v. Blackberry Limited, et. al,November 08, 2013
Newman Ferrara LLP announces that it has filed a class action lawsuit in the Unites States District Court, Southern District of New York against BlackBerry Limited (NASDAQ: BBRY) ("BlackBerry" or the "Company") and certain of its executive officers, alleging violations of federal securities laws. The case is entitled, Vu Tran v. Blackberry Limited, et al, 13 CIV 7972 (SDNY).
Investors who purchased BlackBerry securities between September 27, 2012 and September 20, 2013 (the "Class Period") may apply with the Court to be appointed Lead Plaintiff no later than December 3, 2013. The Lead Plaintiff will direct the litigation on behalf of the other class members.
As alleged in Newman Ferrara's Complaint, BlackBerry and certain of its officers made a series of materially false and misleading statements and omissions related to the Company's business and operations in violation of the Securities Exchange Act of 1934. In particular, it is alleged that BlackBerry actively misled investors about the success and financial prospects of its new BlackBerry 10 line of smart phones and claimed falsely that the line would herald in the Company's financial recovery. However, unbeknownst to investors, the introduction and poor market reception of the BlackBerry 10 line was actually further hurting the Company's business, operations and financial situation.
On September 20, 2013, BlackBerry admitted finally that it would incur massive charges due to unsold BlackBerry 10 inventory. According to the Company's release:
"[BlackBerry] expects to report a primarily non-cash, pre-tax charge against inventory and supply commitments in the second quarter of approximately $930 million to $960 million, which is primarily attributable to BlackBerry Z10 devices."
To make matters worse, the Company further announced it is preparing for deep staff cuts of up to 40% of its employees by year end.
As a result of these disclosures, BlackBerry stock plummeted from a closing price of $10.52 per share on September 19, 2013, to a close of $8.73 per share on September 20, 2013. Thereafter, BlackBerry shares continued to slide on heavy trading volume as investors liquidated their positions.
Investors who purchased shares of BlackBerry during the Class Period may contact Newman Ferrara partner Jeffrey M. Norton (firstname.lastname@example.org) by email or call (212) 619-5400 to discuss this lawsuit or the Lead Plaintiff process.
Whistleblowers: Persons with knowledge that may aid in the investigation of this matter are encouraged to contact the firm. Under the Dodd-Frank Wall Street Reform Bill, whistleblowers are protected from employer retaliation and may be entitled to as much as 30 percent of the recovery if the information provided leads to a successful action.
Newman Ferrara maintains a multifaceted practice based in New York City with attorneys specializing in complex commercial and multi-party litigation, securities fraud and shareholder litigation, consumer protection, civil rights, and real estate. For more information, please visit the firm website at www.nfllp.com.
Newman Ferrara LLP
Jeffrey M. Norton
1250 Broadway, 27th Fl.
New York, NY 10001
Tel: (212) 619-5400