June 26, 2022

BlackBerry BB-T mentioned on Thursday it had agreed to pay US$165-million to settle a greater than eight-year-old class motion lawsuit introduced in opposition to it for allegedly defrauding shareholders by exaggerating BlackBerry 10 smartphone’s success and profitability.

Below the settlement, which requires a choose’s approval, the cost shall be made to settle claims introduced on behalf of those that purchased the corporate’s shares between March 28, 2013, and Sept. 20, 2013.

Reuters reported on Wednesday that the corporate was planning to settle the lawsuit to keep away from trial in the US.

U.S. District Decide Colleen McMahon in Manhattan federal court docket granted a request from the corporate’s legal professionals and shareholders to adjourn their deliberate trial to barter a preliminary settlement.

Shareholders accused the corporate of concealing BlackBerry 10′s true gross sales prospects in public statements throughout 2013, leading to an inflated share value.

Lawsuits accusing firms of deceptive shareholders are widespread in the US, however few go to trial.

Whereas the BlackBerry 10 received optimistic critiques from critics, it by no means caught on with the general public, which most popular Android-based smartphones and Apple Inc.’s iPhones, which led to BlackBerry’s resolution to cease making telephones in 2016.

The Canadian firm now has shifted focus to cybersecurity and making embedded working techniques extensively utilized in vehicles.

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