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March 31, 2013

US judge dismisses shareholder lawsuit against BlackBerry

The lawsuit was filed to recover losses for US shareholders, who acquired the company's stock from December 2010 to June 2011.

By CBR Staff Writer

A US judge has granted BlackBerry’s motion to dismiss the shareholder lawsuit which was filed in 2011 against it by its investor Robert Shemian.

US District Judge Richard Sullivan in Manhattan ruled that the plaintiffs failed to substantiate his allegation that the Canadian smartphone manufacturer or its executives had created deliberate and material misstatements.

Shemian sought to recover losses for US shareholders, who acquired the company’s stock from December 2010 to June 2011.

Sullivan was quoted by Reuters as saying that BlackBerry clearly had failed to keep pace with rivals in developing smartphones and information technology, and the defendants "have paid a price for their mistakes by way of demotions, terminations and sizable financial setbacks."

"Nevertheless, corporate failings alone do not give rise to a securities fraud claim," Sullivan said.

Last month, BlackBerry former co-CEO Jim Balsillie sold his remaining shares in the Canadian smartphone manufacturing firm.

Earlier this month, the company, which changed its name from Research in Motion to BlackBerry, received an order for one million smartphones.

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