BlackBerry accused of misleading investors about financial health

Washington, Oct. 7 : BlackBerry has been reportedly accused by one of its shareholders of misleading investors about the company's financial health.

Investor Marvin Pearlstein has alleged that the sinking smartphone manufacturer and two of its executives made false and misleading statements that the company was progressing on its financial and operational commitments and the previews of its BlackBerry 10 smartphone were welcomed by developers.

According to Cnet, the lawsuit further alleges that the company's CEO Thorsten Heins misled investors during a 2012 conference when he claimed that the company as financially strong and delivering on its commitments.

The plaintiff said that in reality the BlackBerry 10 wasn't received well and the company was forced to write down a nearly 1 billion dollar charge related to the devices apart from axing 40 percent of its total workforce.

The lawsuit seeks to represent the shareholders who invested in the company between the times Heins allegedly made those claims and when the company announced its expected losses of around 995 million dollars in the fiscal second quarter.

A BlackBerry representative declined to comment on the lawsuit, the report added.

--ANI (Posted on 07-10-2013)

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