Blackberry recently encounter tough situation, facing class action shareholder lawsuit in U.S. Shareholder claiming that the company misled investors about its future, including how the BlackBerry 10 smartphone line would fare against competitors. As a consequence, the recent tumble in BlackBerry stock was a direct fallout from the executives’ misrepresentation of BlackBerry’s financial state.

From my point, the reason why blackberry gets into such situation is mainly due to the business fraud. Normally, there are three factors that appear to be present in financial statement fraud, which are an apparent situational pressure ( the intensity competition among tech market and the powerful rivals, such as Apple and Samsung).Perceived opportunity (pressure from the outstanding achievement before and along with the perception that they can get away with it), and rationalization (a ability to convince themselves ).

Hence, with overloaded information and rapid technology speed in society. Blackberry is supposed to meet individuals’  needs and  improve the technology rather than misrepresent the true situation of this company.

citation

http://en.wikipedia.org/wiki/BlackBerry

http://finance.yahoo.com/news/blackberry-faces-class-action-shareholder-164233141.html;_ylt=A2KJjaj2VFNS90sAyOPwFAx.

class 9 financial accounting

https://www.cga-pdnet.org/Non_VerifiableProducts/ArticlePublication/FinStatFraud/FinStatFraud_p1.pdf