Nokia to fight U.S. suit alleging it hid production delays

The suit claims Nokia's /quotes/comstock/22u!noki-sek  (FI:NOK1V  9.75, -0.31, -3.08%)  /quotes/comstock/13*!nok/quotes/nls/nok  (NOK  13.39, -0.35, -2.55%) positive statements in early 2008 about new product launches were without basis given the component supply shortages and manufacturing problems the firm faced.

It also alleges that Nokia didn't disclose that it had sharply cut its average selling prices in order to maintain market share.

"Nokia has reviewed the allegations contained in the complaint and believes that they are without merit," the mobile-phone maker said in a brief statement Monday.

"Nokia intends to defend itself against the complaint vigorously," it added.

The lawsuit was filed in the U.S. District Court for the Southern District of New York by Coughlin Stoia Geller Rudman & Robbins. The suit is on behalf of investors who bought the company's American Depository Shares between Jan. 24 and Sept. 5, 2008.

"In early 2008, defendants became aware that Nokia was likely to experience production-related delays associated with its mid-price range cellular phones, including certain of its smart phones," the suit alleges.

"Defendants hid this fact from investors and instead highlighted the company's expected launch of several new phones," it added.

News Source:- http://www.marketwatch.com