BlackBerry 10 OS may have reached the end of its useful life for BlackBerry, but for some investors, it never did reach usefulness for them.
A federal judge has allowed a US class action lawsuit against the Canadian company and some of its former executives to carry on. Shareholders have accused BlackBerry, known previously as Research In Motion, of withholding information regarding its rather rosy expectations of how BB10 phone sales would go in 2013. The software never fared well as a fourth-place contender to platforms targeting mainstream consumers such as Windows Phone, iOS or Android. A prior version of this case that started in 2015 was not allowed to proceed.
Reuters reports that another suit filed in 2015 had gone after James Dunham, then-chief operating officer at retailer Wireless Zone, for selling confidential industry data about high return rates for BB10 devices at 400 stores. The data was posted in one of brokerage firm Detwiler Fenton’s research reports in April of 2013. Dunham pleaded guilty and served a 5-month prison sentence.
Investors now claim in a new proposed suit that BlackBerry’s public response to the research report that supported BB10’s market performance contradicted data it supposedly had from the likes of Dunham. Judge Colleen MacMahon agreed that this new information could be the basis of a case and that new legal precedent could allow a case to show that opinion-based statements were misleading.