Shareholders create more problems for Blackberry officials with lawsuit filing in Quebec

by Andrew Roach on October 16, 2013

Over the past 7 days, Blackberry has been doing what it can to try and get back on to the good sides of the public with the company publishing a letter to Canadians which aimed to ease fears about their long term future.

It seems that this hasn’t been enough for Blackberry users in Quebec as the smartphone manufacturer is now facing a lawsuit from shareholders of the company who are looking for compensation over the company’ s poor decisions.

The lawsuit is claiming that the company failed to recognise the needs of Blackberry users over the past year with their new products and devices.

It is another major legal headache for the struggling smartphone manufacturer who was slapped with a similar case in Ontario last week.

In a similar manner to the Ontario case, the lawsuit in Quebec will seek to punish Blackberry for giving a false impression to shareholders about the company’s true problems and the state of the company following the launch of the Blackberry 10 range of smartphones.

There have been several occasions when senior officials announced that the company had still be on target to reach their quarterly targets only to reveal substantial losses at the end.

The problem has caused unrest with shareholders throughout Quebec including Merchant Legal Group who were the firm to launch the class-action suit against Blackberry. They launched the case on grounds that shareholders were thinking that Blackberry were enjoying success worldwide with new phones such as the Z10 and Q10.

After learning about the problems facing Blackberry, Merchant officials felt that they needed to take action to make up for the problems that have faced shareholders. This was underlined in comments made by the law firm’s Tony Merchant who told the National Post: “For almost a full year, BlackBerry management made market statements based on prophecy rather than fact. Thousands of Canadians who invested in BlackBerry Ltd. in the past year have lost hundreds of millions of dollars.”

The case comes despite the public letter that Blackberry sent to the public where they not only addressed the problems facing the company but also played down the fears that the company may not have a long-term future.

Having faced weeks of revealing bad news such as major financial losses and a series of job cuts, Blackberry are unable to get good news from anywhere and it looks like their journey over the next year or so will be anything but simple as they look to try and steady the ship in any way they can.

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Written by: Andrew Roach www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube

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