NEW YORK, Aug. 8, 2011 (GLOBE NEWSWIRE) -- Notice is hereby given that Faruqi & Faruqi, LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all persons who transacted in Research In Motion Limited ("RIM" or the "Company") (Nasdaq:RIMM) securities between December 16, 2010 and June 16, 2011 inclusive (the "Class Period").
A copy of the complaint can be viewed on the firm's website at www.faruqilaw.com
RIM and certain of its officers and directors are charged with issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that defendants, failed to inform investors that: (1) its aging product line and inability to introduce new products to the market was negatively impacting the Company's business and margins; (2) the Company was unable to introduce new products in a timely manner, which hurt the Company's ability to maintain its market share in the smartphone market; (3) the Company's resources had become limited as it attempted to develop new products; (4) the Company experienced lower-than-expected Blackberry smartphone sales and shipments in the United States and Latin America; and (5) the Company relied on sales of older-model smartphones at lower retail price points than their newer, but delayed, products.
On March 24, 2011, the Company announced disappointing guidance and financial results from the fourth quarter and fiscal year 2011, causing RIM common stock to drop 11.2% on March 25, 2011. On June 16, 2011, the Company announced its financial result for the first quarter of fiscal 2012, ended May 28, 2011. For the quarter the Company disappointed analysts and investors, reporting earnings of $1.33 per share, down $0.05 from the first quarter of fiscal 2011. The Company also revised its expectations for full year per share earnings. On that news, RIM's common stock plummeted even further to close on June 17, 2011 at $27.75, off 21.5% or $7.58 from the prior day's close of $35.33.
Plaintiffs seek to recover damages on behalf of themselves and all other individual and institutional investors who transacted in RIM securities between December 16, 2010 and June 16, 2011, excluding defendants and their affiliates. Plaintiffs are represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions and actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website or by clicking here: www.faruqilaw.com/RIMM
If you transacted in RIM securities during the Class Period, you may, not later than August 12, 2011, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact: