Kamil Khan's Sauder Blog

Does Marvin Pearlstein’s lawsuit signal the death of Blackberry?

Blackberry released troubling news on September 20th when they announced that they will “have to write down between $930 million and $960 million US related to unsold BlackBerry 10 devices.” This press release comes in harsh contrast to what they have been telling the public last year, when they stated that the company was “progressing on its financial and operational commitments.” The announcement caused Blackberry stock prices to stumble 24% between September 20th and September 26th.

Now Blackberry has another issue to deal with. Marvin Pearlstein Blackberry shareholder filed a lawsuit against the company, claiming that Blackberry mislead investors about Blackberry 10’s prospects in attempts to increase stock prices.

The lawsuit comes after Blackberry had to lay off close to 40% of it’s employees, and being in the talks with selling parts, or even all, of it’s intellectual properties to other technology giants. While the lawsuit may not be the nail in Blackberry’s coffin, it may perhaps be the Grim Reaper knocking on it’s door.