- Company Name
- Nokia Corporation
- Stock Symbol
- Class Period
- April 15, 2015 to March 21, 2019
- Motion Deadline
- June 18, 2019
- Southern District of New York
The complaint charges Nokia and certain of its officers with violations of the Securities Exchange Act of 1934. Nokia is a network and technology company that provides hardware, software and services for telecommunications operators and enterprises and provides fixed networking solutions. In November 2016, Nokia acquired Alcatel-Lucent S.A. (“Alcatel-Lucent”), a company that offers fixed, IP, optical applications and analytics technologies.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about the Company’s business and operations. Specifically, defendants failed to disclose that Alcatel-Lucent had certain compliance issues with its business practices and that Nokia had failed to conduct adequate due diligence into Alcatel-Lucent prior to the acquisition. As a consequence, Nokia would be subject to increased regulatory scrutiny and was reasonably likely to face serious criminal and civil penalties. As a result of this information being withheld from the market during the Class Period, Nokia securities traded at artificially inflated prices, with its share price reaching a high of more than $8 per share.
Then on March 21, 2019, the Company disclosed that “[d]uring the course of the ongoing integration process, [it] ha[d] been made aware of certain practices relating to compliance issues at the former Alcatel Lucent business that have raised concerns.” The Company stated that it had “initiated an internal investigation and had voluntarily reported the matter to the relevant regulatory authorities, with whom [it] was cooperating with a view to resolve the matter.” On this news, the price of Nokia shares fell over 6% to close at $5.88 per share on March 22, 2019.