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Nokia refutes claims of investor deception

Nokia refutes claims of investor deception

Nokia will be forced to defend itself in US courts once more, this time in a class action suit that puts forward the accusation that the financial status of the firm was not made totally clear to investors.

It is claimed by the plaintiffs from the City of Roseville Employees' Retirement System that between January and September 2008 the lack of proper information from Nokia regarding its performance caused investors to lose money.

A total of three separate incidents of deception are being claimed by the accusers, implicating Nokia's Chief Executive Officer (CEO) Olli-Pekka Kallasvuo and the former finance head Richard Simonson.

These include product announcements made with unrealistic launch dates due to hardware shortages, a failure to announce market share impact caused by rivals dropping prices and, finally, Nokia failing to announce that it was set to reduce the retail prices of its own mobile phones in 2008.

It was on the 5th of September 2008 that Nokia publicised all three pieces of information and an eight per cent drop in share prices was caused as a result.

Damages are being sought by those who have filed the suit and they are asking for compensation to be given to all American investors who bought into Nokia via the American Depositary Shares (ADS) system.

In a rebuttal statement the Finnish manufacturer said: "Nokia has reviewed the allegations contained in the complaint and believes that they are without merit. Nokia intends to defend itself against the complaint vigorously."

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