U.S. Shareholders File Class Action Suit Again Nokia

Authored by Mark Hefflinger on April 7, 2004 - 6:51am.

Helsinki -- The largest mobile-phone maker in the world, has been sued by U.S.-based law firm Milberg Weiss Bershad Hynes & Lerach, which filed a class-action suit against Nokia for "material misrepresentations" when the Finnish mobile group predicted an increase in first-quarter sales -- only to announce later that revenues fell. According to a statement released, the suit, which includes Nokia CEO Jorma Ollila and CFO Rick Simonson, claims that Nokia issued "a series of material misrepresentations to the market between Jan. 8, 2004, and April 6, 2004". Nokia revealed on Tuesday that its first-quarter sales had unexpectedly dropped by 2% after having previously predicted sales would grow by at least 3% and as much as 7%. The news sent its shares crashing by nearly 17% in late Tuesday afternoon trading. Nokia said on Wednesday that the class-action suit against it for securities fraud was without merit and that it would defend itself vigorously.
http://press.nokia.com/PR/200404/941060_5.html
http://www.milberg.com/mil-cgi-bin/mil?templ=home.html