Stockholders v Nokia OYJ (Nokia Corporation)
Nokia Investors’ Trust Violated by Alleged Failure to Disclose Poor Market Position
Several class actions have been filed against cellular phone manufacturer Nokia OYJ (Nokia Corporation) (NYSE: NOK) and certain of its officers and directors by stockholders who purchased the company's common stock between January 8, 2004, and April 6, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
The action names as defendants Nokia, Matti Alahuhta (Nokia's Chief Strategy Officer), Pekka Ala-Pietila (Nokia's President), Jorma Ollila (Nokia's Chairman and Chief Executive Officer) and Richard A. Simonson (Nokia's Chief Financial Officer). The action alleges that during the applicable period, the defendants represented that sales growth in the first-quarter of 2004 would be between 3% and 7%, that Nokia expected market growth to continue, and that it had a strong position in the market for mobile phones.
On April 6, 2004, Nokia announced in a press release that: (1) first-quarter 2004 net sales would not increase by 3-7% as previously stated but would decrease by 2%, (2) that it had been unable to respond to changing trends in demand for mobile phones, and (3) that it was losing market share to its competitors. On this news, Nokia ADRs, which had closed at $21.15 on April 5, 2004, fell 16% to $17.73% in midday trading on volume in excess of 71 million shares.
If you purchased securities issued by Nokia during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by June 7, 2004. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve as you in this action, or you may choose to do nothing, and remain in the class as a silent member.
