BlackBerry (TSX:BB) has been hit with a class action lawsuit, according to technology blog Techvibes.
The suit alleges that the wireless company misleadingly implied that the business prospects for its new smartphone line were positive, which led to an inflation of its stock price.
The complaint alleges: "In reality, the BlackBerry 10 was not well-received by the market, and the company was forced to ... lay off approximately 4,500 employees, totaling approximately 40% of its total workforce."
BlackBerry shareholder Marvin Pearlstein filed the lawsuit in a Manhattan court. The suit seeks to represent the thousands of shareholders who bought stock in the company between September 27, 2012 and September 20, 2013. During this period, the suit alleges, the company painted a rosy picture of its financial position, until it announced a $1 billion tax loss.
None of the allegations has been proven.
