BlackBerry Limited (TSX: BB) announced today that it has reached a settlement agreement with the plaintiffs of a class-action lawsuit pertaining to defrauding its shareholders. The settlement is reportedly worth US$165 million.
In the case Pearlstein v. Blackberry Limited, the plaintiffs are suing the company for misrepresenting the prospect and profitability of the BlackBerry 10 smartphone model. The petitioners represent the group of shareholders between March 28, 2013 and September 20, 2013.
But even after the settlement, the now software security firm still believes that the case was “without merit.”
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“While BlackBerry believes that the allegations in the case were without merit, it also believes that eliminating the distraction, expense and risk of continued litigation is in the best interests of the Company and its shareholders,” said the firm in its statement.
The US$165-million settlement is expected to reflect on the company’s financials for the fiscal quarter ending May 31, 2022.
In January 2022, the company was looking to sell its non-core patents, which are related to mobile devices, messaging, and wireless networking for US$600 million, as it moves to become a full-fledged security firm.
BlackBerry last traded at $8.68 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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