Marvin Pearlstein, a BlackBerry Ltd. shareholder, sued the company after it announced losses of over $930 million with a write down due to unsold BlackBerry 10’s.  Pearlstein accused the company of inflating stock prices and misleading investors into believing that the new smartphone line was going to be successful.  BlackBerry’s share value dropped 24%, from $10.52 to $8.01within 5 days of the announcement of the write down.

Pearlstein does not have the right to accuse BlackBerry for misleading investors.  In September 2012, BlackBerry was in a very strong financial position as their past products had been very successful; however, due to popularity of competing brands, such as Samsung and Apple, BlackBerry’s sales dropped.  BlackBerry did not intend to create an unsuccessful line.  Prior to investing, the investor should be aware of the numerous amounts of risks that are related to making an investment into a company.  According to the article, people invest in hopes of generating more money; however, there are always risks.  When making an investment, there is never a guarantee that the investor will receive a return.  Investments into companies are made based on speculation; therefore, the investor should accept the fact that he made a bad investment.

http://www.cbc.ca/news/business/blackberry-hit-with-shareholder-lawsuit-1.1913852

http://www.theglobeandmail.com/report-on-business/blackberry-hit-with-securities-shareholder-class-action/article14713440/

https://www.youtube.com/watch?v=nUsRChAmtQ0

https://www.youtube.com/watch?v=FsuzZitg83c