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Nokia Faces Class-Action Suit Over Windows Phone Deal

Soulskill posted more than 2 years ago | from the barn-doors-and-horses dept.

Microsoft 257

nk497 writes "Nokia has been hit with a class-action suit, with the claimant accusing the company of making 'false and misleading' statements about the ability of its deal with Microsoft to revive the struggling mobile maker. 'The complaint alleges that during the Class Period, defendants told investors that Nokia's conversion to a Windows platform would halt its deteriorating position in the smartphone market,' read a statement (PDF) from the law firm Robbins Geller Rudman and Dowd. 'It did not.'"

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Another ridiculous lawsuit (2, Interesting)

yog (19073) | more than 2 years ago | (#39890453)

It just proves that in America, you can sue anybody for anything.

Nokia's defense would obviously be that market conditions changed, they could not possibly know the future, and all business decisions are inherently risky.

Also, given that Microsoft invested hundreds of millions of dollars into Nokia, their decision to go with Windows phone OS can hardly be regarded as the riskiest of choices. When one of the world's largest corporations invests in you, you are not going to go out of business the next day, or the next year.

That said, I believe Nokia would be better off turning their engineering expertise to producing some Android phones, to take advantage of the enormous app market. They are capable of making a great phone, but their operating systems have been marginalized by the success of Apple and Android. So why not go with one of the winners?

Plus I can say from personal experience that their support for developers has been shaky, what with all but dropping support for Java, then releasing the N7 and N9, then dropping them in favor of Windows Mobile. What are they going to surprise us with next month? It's safer to stick to an established and relatively stable market such as Android or IOS.

Re:Another ridiculous lawsuit (5, Interesting)

Anonymous Coward | more than 2 years ago | (#39890569)

It just proves that in America, you can sue anybody for anything.

Uh...yeah? That's the way the system works. Anyone can bring an action against anyone else and the court must hear it.

I could file paperwork with my local court saying you are a douche and that somehow harmed me. They would read through the documents and (probably pretty easily) come to the conclusion that I haven't made a case that you broke the law and/or harmed me and throw it out.

Some cases aren't as clear-cut as my example and require a judge and jury to decide.

Could you imagine if we used your model? You can't sue anybody for anything--only stuff I think is legit. That would put you in a fairly powerful position....something like 'dictator' or whatever.

Re:Another ridiculous lawsuit (0)

Anonymous Coward | more than 2 years ago | (#39890693)

Herpa derp. GP never suggested "only stuff I think is legit". Kudos to you tho.

Re:Another ridiculous lawsuit (0, Troll)

Saranee (2632053) | more than 2 years ago | (#39891041)

It's an idiotic lawsuit. Both Microsoft and Nokia have chosen a long term business venture. Changes take time and they want to do it right. This is crying from people who want short term profits even if it means long term failures.

Frankly and fortunately, both Microsoft and Nokia have never played that game and are better than that. They think long term. They act long term. Hell, everyone on slashdot complaints how companies just want quick profit. Microsoft and Nokia are fresh air to that.

Re:Another ridiculous lawsuit (1)

Overly Critical Guy (663429) | more than 2 years ago | (#39891279)

You make a rational, well-thought point, but ranting about lawsuits in America gets the mod points, sorry.

Re:Another ridiculous lawsuit (1, Flamebait)

oh_my_080980980 (773867) | more than 2 years ago | (#39890593)

Or an idiot - you - is born every minute.

The suit alleges Nokia lied to investors. This is very serious. Corporations lying to investors is not taken likely. If Nokia knowingly over-stated performance, then yes the suit has merit. Nokia had an entire year to turn things around. As it turned out, they did not. A bad 2012 1Q and project bad 2Q means Nokia is failing and that the deal with Microsoft did not help Nokia.

Learn a thing or two about corporate financial reporting.

Re:Another ridiculous lawsuit (2, Insightful)

Lunix Nutcase (1092239) | more than 2 years ago | (#39890651)

Forward-looking statements have disclaimers. This guy is a moron. There was no 'lying' to this at all.

Re:Another ridiculous lawsuit (0)

oh_my_080980980 (773867) | more than 2 years ago | (#39890759)

And you know this how? If Nokia had financial information that show performance was not improving and failed to disclose that information, then Nokia lied.

Re:Another ridiculous lawsuit (1)

sosume (680416) | more than 2 years ago | (#39890795)

And why would Nokia choose a path where they were sure to fail? The guy filing the suit is a moron indeed. There's a reason it's called investing and not saving; there is a risk you lose all your money. He was free to sell his Nokia shares at the time. There was a chance that Windows Mobile would score big in the corporate world. It didn't.

Re:Another ridiculous lawsuit (1)

UnknowingFool (672806) | more than 2 years ago | (#39891001)

I don't think the suit has merit, but I don't have any knowledge of proof. If they plaintiff is going on hunches and guesses then it should be thrown out. If he/she had proof that Nokia knew the deal wasn't in the best interest of Nokia but was done for other reasons (like Elop scratching the back of his former employer) then they have to present it to the court. It isn't always about some investor guessing wrong.

Re:Another ridiculous lawsuit (1)

Anonymous Coward | more than 2 years ago | (#39891015)

Because their value to Microsoft is greater as a patent troll than a hardware manufacturer.

Re:Another ridiculous lawsuit (3, Insightful)

Sir_Sri (199544) | more than 2 years ago | (#39891037)

It didn't.

Nokia's entire argument in 1 word: Yet.

Whether they are right or not who knows, but their plan to save the company with Windows phones is still in its early phases. Which is a commentary on their poor execution, but it's still a plan in motion. The guy filing the suit is either a moron, or is in trouble with his own investors and is trying to get himself press for looking like he's doing something.

Re:Another ridiculous lawsuit (2)

Dcnjoe60 (682885) | more than 2 years ago | (#39891211)

And why would Nokia choose a path where they were sure to fail? The guy filing the suit is a moron indeed. There's a reason it's called investing and not saving; there is a risk you lose all your money. He was free to sell his Nokia shares at the time. There was a chance that Windows Mobile would score big in the corporate world. It didn't.

That's his point. He would have sold his shares if Nokia was forthright in telling investors what the real situation was. Corporations are liable for information and promises they tell investors. Whether or not Nokia was misleading or not will be for the courts to decide.

What the courts will not be deciding is whether or not it was a good decision to go with Windows Mobile, only whether or not Nokia mislead the investors. These suits happen all the time.

Re:Another ridiculous lawsuit (1)

CanHasDIY (1672858) | more than 2 years ago | (#39890797)

And you know this how?

He probably RTFS:

'The complaint alleges that during the Class Period, defendants told investors that Nokia's conversion to a Windows platform would halt its deteriorating position in the smartphone market,'

Re:Another ridiculous lawsuit (2)

Lunix Nutcase (1092239) | more than 2 years ago | (#39890807)

Because I actually read their entire statement including the huge disclaimer about forward-looking statements contained in it?

Re:Another ridiculous lawsuit (4, Insightful)

PickyH3D (680158) | more than 2 years ago | (#39890799)

Wait, what? Nokia just released their first Windows Phones in November 2011, neither were released in the United States. At some point they released the Lumia 710 in the United States, and it sold pretty well, but it was on the smallest of the big carriers: T-Mobile. Now, Nokia has added the Lumia 900 to AT&T and it is supposedly selling pretty well (I live near a Microsoft Store, and I can honestly say that the store itself has been recently more popular than the Apple Store in the mall, but that mostly has to do with location within the mall; I have also seen a lot of people walking out with new Lumia 900 phones).

Anyway, all of this is to say that you have no idea what you are talking about when you are talking about financial reporting. Two phones are not going to save a company, and at least two bad quarters were expected. Nokia is just now getting back into the swing of things, and people looking for instant success are both naive and represent what is wrong with investors in general these days.

Otherwise, Motorola Mobility going with that "Android" platform is really proving to be a sinking ship, right? Because they've had two bad quarters too.

Learn a thing or two about corporate financial reporting.

Re:Another ridiculous lawsuit (-1)

Anonymous Coward | more than 2 years ago | (#39890919)

Otherwise, Motorola Mobility going with that "Android" platform is really proving to be a sinking ship, right? Because they've had two bad quarters too.

Hey, stupid, Nokia reported a loss in the billions of dollars last quarter. Motorola has had nowhere near as bad a time.

Re:Another ridiculous lawsuit (1)

21mhz (443080) | more than 2 years ago | (#39890945)

people looking for instant success are both naive and represent what is wrong with investors in general these days.

Or, more often on this site, they need some superficial confirmation that Nokia was wrong in abandoning a Linux-based platform and going with Microsoft.

Re:Another ridiculous lawsuit (0)

Anonymous Coward | more than 2 years ago | (#39891057)

Or, more often on this site, they need some superficial confirmation that Nokia was wrong in abandoning a Linux-based platform and going with Microsoft.

Maybe it doesn't have shit to do with your little "us-vs-them" mentality and has to do with Nokia abandoning a promising platform that has still sold very well compared to their new lumia line and going with an unproven OS that has been out almost two years now and still has done nothing but collect dust on retailers shelves worldwide. If I were a NOK shareholder, I'd be pissed. You can now continue on your fanboy rage tirade.

Re:Another ridiculous lawsuit (3, Insightful)

Dishevel (1105119) | more than 2 years ago | (#39891223)

If I was still a Nokia shareholder I would be stupid.

Re:Another ridiculous lawsuit (1)

PickyH3D (680158) | more than 2 years ago | (#39891253)

You can now continue on your fanboy rage tirade.

That statement could not be much more ironic given the phrasing of your entire post.

Re:Another ridiculous lawsuit (0)

Anonymous Coward | more than 2 years ago | (#39891301)

That statement could not be much more ironic given the phrasing of your entire post.

On the contrary, the operative term there is "fanboy". You obviously are one for Nokia damn the consequences. While the GP is just, albeit using harsh words, exposing your childish demeanor.

Re:Another ridiculous lawsuit (2)

UnknowingFool (672806) | more than 2 years ago | (#39891143)

At some point they released the Lumia 710 in the United States, and it sold pretty well, but it was on the smallest of the big carriers: T-Mobile.

Determines by what you mean "pretty well". I think I read that Nokia sold 2M Lumias since December. 2M in the US over 2 quarters isn't exactly a lot and Lumias don't appear to be selling nearly as well elsewhere. Nokia sold roughly 300K Symbian in Q1 and between 1.5-2M in Q4. It doesn't look good for WP7 if it can't beat a platform that isn't being advertised and is being actively phased out.

Re:Another ridiculous lawsuit (2)

poetmatt (793785) | more than 2 years ago | (#39890597)

I don't know about the legality, but a lot of people jumped ship when this deal was struck...I do recall many people had substantial disagreements with the deal in the first place.

Re:Another ridiculous lawsuit (5, Interesting)

fuzzyfuzzyfungus (1223518) | more than 2 years ago | (#39890607)

Eh, I wouldn't be so quick to dismiss it.

If you look at various SEC mandated, or voluntary, disclosures from publicly traded companies, you'll almost always see something like this example [timewarner.com] from Time Warner.

Legally, distinguishing between statements of fact and 'forward looking statements' makes a difference. It's like the securities equivalent of the “These statements have not been evaluated by the FDA. This product is not intended to diagnose, treat, cure or prevent any disease.” tag you always see on 'dietary supplements'.

So, if some optimist was given information that constituted a forward looking statement, with the usual boilerplate, about what Nokia hoped their strategy would do, they can go shove it. If Nokia outright claimed that this move would have a specific, definite effect, on their market position or stock price, Nokia may well have shoved their foot in their mouth, good and hard...

Re:Another ridiculous lawsuit (1)

oh_my_080980980 (773867) | more than 2 years ago | (#39890813)

Thank you!

Re:Another ridiculous lawsuit (1)

cpu6502 (1960974) | more than 2 years ago | (#39890615)

+ 1 insightful.

Re:Another ridiculous lawsuit (0)

Anonymous Coward | more than 2 years ago | (#39890621)

Nokia's defense would obviously be that market conditions changed, they could not possibly know the future, and all business decisions are inherently risky.

basically it boils down to some moron didn't read the fine print concerning forward looking statements, yada yada yada, that are at the bottom of investor correspondence, press releases, etc. and found a lawyer to sue nokia for their own stupidity.

Re:Another ridiculous lawsuit (1)

larry bagina (561269) | more than 2 years ago | (#39890669)

Android phones are a commodity item. That means a race to the bottom. Samsung and Microsoft (via patent licensing) are the only people making money off it -- Motorola is in the red. Hell, Oracle/Google court documents showed Google losing money on Android in 2010.

It's like the PC business all over again -- IBM gave up, Compaq wanted to give up, and Dell is trying to give up. The margins are so small and there's nothing to differentiate one from another. Except for shitty interface "enhancements" (touchpiss, etc).

Re:Another ridiculous lawsuit (1)

jawtheshark (198669) | more than 2 years ago | (#39890743)

Except for shitty interface "enhancements" (touchpiss, etc).

Touchpiss? Something like this? [piss-screen.de]

Re:Another ridiculous lawsuit (2)

andydread (758754) | more than 2 years ago | (#39890745)

What the hell are you talking about? And Windows is not a commodity? You even get less differentiation of your product from others when you use Windows rather than Android. You have less room to be different from the next guy with Windows.

Re:Another ridiculous lawsuit (-1)

Anonymous Coward | more than 2 years ago | (#39890867)

Windows is not a commodity. It's a monopoly. How many companies can offer Android? How many companies can offer Windows? See the difference?

Re:Another ridiculous lawsuit (1)

cpu6502 (1960974) | more than 2 years ago | (#39890845)

>>>It's like the PC business all over again..... margins are so small and there's nothing to differentiate one from another

Never thought of it like that. The old IBM PC has evolved into a commodity item like shavers or microwaves. I guess it's only a matter of time until I can get one at Walmart for sub-100 dollars.

Re:Another ridiculous lawsuit (0)

Anonymous Coward | more than 2 years ago | (#39890983)

Windows Phones are a commodity item. That means a race to the bottom. Everybody is losing money on it -- Nokia is in the red. Hell, Microsoft's quarterly report showed them losing money on windows phone in 2011.
It's like the PC business all over again -- IBM gave up, Compaq wanted to give up, and Dell is trying to give up. The margins are so small and there's nothing to differentiate one from another. Except for shitty interface "enhancements" (Nokia Drive, etc).

There, FTFY.

Re:Another ridiculous lawsuit (0)

Anonymous Coward | more than 2 years ago | (#39891177)

Problem with that argument is that Windows is the same thing, except more so: With Microsoft Nokia has even less room for differentiation. Their only choice is to build pretty much the same Win-phone that Samsung, LG & others will build as well.

Re:Another ridiculous lawsuit (0)

Anonymous Coward | more than 2 years ago | (#39890689)

Plus I can say from personal experience that their support for developers has been shaky, what with all but dropping support for Java, then releasing the N7 and N9, then dropping them in favor of Windows Mobile. What are they going to surprise us with next month? It's safer to stick to an established and relatively stable market such as Android or IOS.

So now that they've made a deal and are sticking to an OS, you want them to change their minds, lose a big chunk of funding, and either make an unlawful nPhone using Apple's OS or make yet another forgettable Android hardware?

If Nokia made an Android phone, then no matter how good it was, Slashdot consensus would condemn them for being late arrivals. There are enough Android makers, bickerring and arguing about MIPS and ARM, and how many cores to include, and how many cores to actually use out of the 12 on the chip. Apple will not allow anyone to compete using their OS, or even something that looks mildly like theirs if seen from 20 feet away. Maybe they would've done better sticking to that Linux phone they abandoned, but at least this way they have a big company throwing some influence in their favor.

Re:Another ridiculous lawsuit (2)

Rhodri Mawr (862554) | more than 2 years ago | (#39890955)

The difficulty with the N900 was that they introduced one phone. As an N900 user (still) I know that the N900 is not for everyone, and was targeted more at the tech-savvy user than your bog standard just-want-a-phone-that-works user. Not everyone wants a built in keyboard or a phone that large. In fact, one of the reasons I haven't changed phone is that it is so difficult to get a decent phone with a slide-out keyboard, similar the the N900. Suggestions welcomed...

Nokia needed to produce several phones around a similar theme aimed at different users, or do what Apple did and produce one phone to a very high standard aimed at the average user, not at a niche market (80/20 rule). Doing what they did was narrow minded and poor business sense.

Nokia's support for developers was, frankly, not an enjoyable experience. This is where being part of the Windows universe will be an advantage to Nokia as that will be Microsoft's responsibility, not their own.

Re:Another ridiculous lawsuit (0)

Anonymous Coward | more than 2 years ago | (#39890731)

>>When one of the world's largest corporations invests in you, you are not going to go out of business the next day, or the next year.

Hello, you must be new. Can i interest you in a bridge?

Re:Another ridiculous lawsuit (4, Interesting)

Anonymous Coward | more than 2 years ago | (#39890829)

Also, given that Microsoft invested hundreds of millions of dollars into Nokia, their decision to go with Windows phone OS can hardly be regarded as the riskiest of choices. When one of the world's largest corporations invests in you, you are not going to go out of business the next day, or the next year.

Except that Nokia intentionally and dramatically increased this risk by killing MeeGo, which is a production quality OS which kicks the shit out of Android and Windows Phone 7.

I believe it's highly likely that Elop is acting in bad faith. However, unless a high ranking Nokia exec leaks information, I don't think there will be any tangible evidence against him.

Re:Another ridiculous lawsuit (1)

21mhz (443080) | more than 2 years ago | (#39890879)

That said, I believe Nokia would be better off turning their engineering expertise to producing some Android phones, to take advantage of the enormous app market. They are capable of making a great phone, but their operating systems have been marginalized by the success of Apple and Android.

You are writing this as if there were some problem with finding great phone hardware for Android. While Samsung pulling out another plastic fantastic design for Galaxy S III gives some truth to this, I don't think Android needs Nokia so badly that it would find immediate success with Android devices.

So why not go with one of the winners?

Because it's better to go where the puck may be found when you get there, than chasing where it is now?

Smartphones are not an established market, nobody knows how it will change over the next few years. It's not impossible that a fallout will happen similar to the video game crash [wikipedia.org] in the 1980s: too many vendors trying to cut a slice of a saturated market, flooding it with often poorly made products, while the platform owners had little power to impose some consistent quality, and home computers and PCs offered increasingly viable alternatives. That time, the consumer backlash buried or forced out most of the players in the console gaming market.

"sue anybody for anything" (0)

Anonymous Coward | more than 2 years ago | (#39891049)

Not quite.
Nokia management told the shareholders that going to Windows would turn things around.
It didn't. Look up the numbers. Windows phone has captured less than 2% of the market.
Nokia is STILL losing money on smartphones.

I'd sue, too.

Re:Another ridiculous lawsuit (0)

Anonymous Coward | more than 2 years ago | (#39891149)

And here I thought it was just me ....

Someone is going to need to update the venn diagram / flowchart of who in the tech. and software world, is suing who.

I'm curious if we've reaching 'plaid level' absurdity yet?!?

Hahahahaha (4, Funny)

GameboyRMH (1153867) | more than 2 years ago | (#39890469)

Whose platform is burning now, E-flop?

Re:Hahahahaha (2)

Alex Belits (437) | more than 2 years ago | (#39890507)

Whose platform is burning now, E-flop?

Still more profitable than Xbox, so it's OK.

He is still a Microsoft employee, right?

Re:Hahahahaha (0)

Anonymous Coward | more than 2 years ago | (#39890891)

Still more profitable than Xbox, so it's OK.

Get with the times: Xbox 360 Division Sees $1.32 Billion Profit For FY2011 [gamasutra.com]

Re:Hahahahaha (2)

Alex Belits (437) | more than 2 years ago | (#39890979)

Over the whole time the project existed, it's still billions in the red.

Re:Hahahahaha (1)

gstrickler (920733) | more than 2 years ago | (#39891031)

Most likely because they got rid of Elop. Of course, Sony has been doing their best to run off PS3 customers. Which brings up and interesting question; did Sony hire a former MS exec a few years ago?

Re:Hahahahaha (1)

UnknowingFool (672806) | more than 2 years ago | (#39891169)

He means Xbox for the life of the products. I think it may eventually break even after 8+ years.

Oh yeah, baby. (4, Insightful)

tgd (2822) | more than 2 years ago | (#39890475)

I'm going to sue for every stock I have that has lost value.

And when I'm done, I'm going to sue all the companies who didn't go up as much as I would've liked!

I'll be rich!

Re:Oh yeah, baby. (5, Insightful)

Racemaniac (1099281) | more than 2 years ago | (#39890511)

I'll be rich!

no you won't, but your lawyers will be :)

Re:Oh yeah, baby. (1)

Hatta (162192) | more than 2 years ago | (#39890971)

Why not sue Elop himself?

The ole' Embrace and Extend (5, Insightful)

sl4shd0rk (755837) | more than 2 years ago | (#39890493)

Historically speaking, entering any kind of business deal with Microsoft usually ends badly.

Re:The ole' Embrace and Extend (2, Interesting)

gtall (79522) | more than 2 years ago | (#39890977)

I hate Microsoft like Satan hates his mother-in-law, but there's very little chance what you said is true. Some high profile cases have gone down the toilet hole, but a company the size of MS must work with hundreds of companies none of which would bother with MS if what you said was true.

Re:The ole' Embrace and Extend (5, Informative)

Anonymous Coward | more than 2 years ago | (#39891187)

When one of the world's largest corporations invests in you, you are not going to go out of business the next day, or the next year.

ïMicrosoft's new "strategic partnership" with Nokia is not its first. For a decade the software company has courted and consummated relationships with a variety of companies in mobile and telecom. Here are the ones I can remember:

LG. In February 2009 Microsoft Corp. signed a multiyear agreement for Windows Mobile to be included on devices from LG Electronics Inc. LG would use Windows Mobile as its "primary platform"for smartphones and produce about 50 models running the software.

What happened? LG made a few Windows Mobile devices but with WinMo uncompetitive, they abandoned the platform and moved to Android losing years of market presence and all their profits.

Motorola. In September 2003, Motorola and Microsoft announced an alliance. "Starting with the introduction of the new Motorola MPx200 mobile phone with Microsoft Windows Mobile software, the companies will collaborate on a series of Smartphone and Pocket PC wireless devices designed to create a virtual "remote control" for the Web-centric, work-centric, always-on-the-go mobile professional." In addition, the alliance includes cooperation on joint marketing and wireless developer programs.

What happened? Motorola launched a series of Windows Mobile phones culminating in the Motorola Q "Blackberry killer". As Motorola hit the rocks in profitability new management reached for the Android liferaft. The company now relies exclusively on the Droid franchise.

Palm. In September 2005 Palm and Microsoft announced a strategic alliance to "accelerate the Smartphone market segment with a new device for mobile professionals and businesses. Palm has licensed the Microsoft Windows Mobile operating system for an expanded line of Treo Smartphones, the first of which will be available on Verizon Wirelessâ(TM) national wireless broadband network."

What happened? Palm shipped a few Windows Mobile, famously dismissing Appleâ(TM)s potential entry as something "PC guys" could never achieve. A new CEO, a private placement and an acquisition later the company is a division of HP making its own operating system.

Nortel. When Steve Ballmer was famously laughing at the iPhone and saying that he likes the Windows Mobile strategy "a lot" he was sitting next to the then-CEO of Nortel (Mike Zafirovski formerly of Motorola) with whom the company had just closed a strategic deal. "an alliance between Microsoft and Nortel announced in July 2006 ⦠includes three new joint solutions to dramatically improve business communications by breaking down the barriers between voice, e-mail, instant messaging, multimedia conferencing and other forms of communication".

What happened? Nortel declared bankruptcy two years later.

Verizon. In January 2009 "Verizon Wireless has selected Microsoft Corp. to provide portal, local and Internet search as well as mobile advertising services to customers on its devices. The five-year agreement will go into effect in the first half of 2009 when Microsoft Live Search is targeted to be available on new Verizon Wireless feature phones and smartphones." The deal would ensure Bing distribution to all of Verizonâ(TM)s smartphone customers.

What happened? Bing did ship on some devices but in October 2009 Droid came to Verizon.

Ericsson. In September 2000, "Ericsson and Microsoft Corp. today launched Ericsson Microsoft Mobile Venture AB. This previously announced joint company will drive the mobile Internet by developing and marketing mobile e-mail solutions for operators. The first solutions are expected to be on the market by the end of the year. The company is part of a broader strategic alliance between Ericsson and Microsoft"

What happened? Ericsson divested itself of the mobile division forming a joint venture which would go on and make more strategic alliances with Microsoft over Windows Mobile culminating in a loss of profits and eventual flight to Android.

Sendo. In February 2001, Microsoft announced a partnership, in which Microsoft bought $12m of Sendo shares and a seat on the board. Sendo was to be Microsoft's "go to market partner" for the Stinger smartphone platform that would become Smartphone 2002.

What happened? Sendo after litigating IP issues with Microsoft went bankrupt in 2005.

And finally,

Nokia. No, not this OS deal, but in August 2009 âThe worldwide leader in software and the worldâ(TM)s largest smartphone manufacturer have entered into an alliance that is set to deliver a groundbreaking, enterprise-grade solution for mobile productivity. Today, Microsoft Business Division President Stephen Elop and Nokiaâ(TM)s Executive Vice President for Devices Kai Ã-istÃmà announced the agreement, outlining a shared vision for the future of mobile productivity. This is the first time that either company has embarked on an alliance of this scope and nature.â
The plan was to bring âoeMicrosoft Office Mobile and Microsoft business communications, collaboration and device management software to Nokiaâ(TM)s Symbian devices.â

What happened? One and a half years later the same Stephen Elop announced that Symbian will be deprecated.

Re:The ole' Embrace and Extend (-1)

Anonymous Coward | more than 2 years ago | (#39891115)

Historically speaking, you're claiming that windows, Xbox, and windows mobile have ended badly?

The Microsoft mobile kiss of death... (4, Insightful)

GameboyRMH (1153867) | more than 2 years ago | (#39890501)

...claims another victim.

Does "class action suit" not mean what it used to? (4, Interesting)

Chrisq (894406) | more than 2 years ago | (#39890513)

From TFA:

Filed in New York by a single complainant, the class-action suit....

Surely if there is a single complainant then this should not be a class action suit?

Re:Does "class action suit" not mean what it used (2, Informative)

Kjella (173770) | more than 2 years ago | (#39890571)

Surely if there is a single complainant then this should not be a class action suit?

As I've understood it, in class actions you sue for "me and everybody else like me", you don't actually need more than one direct victim if the suit passes muster. Not that I think this one will..

Re:Does "class action suit" not mean what it used (1)

lymond01 (314120) | more than 2 years ago | (#39890581)

Only directly affected people can start a class action suit. Lawyers will try to get more people in on the suit.

Gains of class action suits:

1) "Victims" give the defendants a slap on the wrist (possibly a change in policy, etc) and generally come out with a few dollars
2) Lawyers make ridiculous sums of money

Re:Does "class action suit" not mean what it used (4, Informative)

micheas (231635) | more than 2 years ago | (#39890601)

The single claimant believes that there are other people that have the identical claim and it would be in Nokia and the courts interest if there was one lawsuit instead of many lawsuits.

The problem for Nokia share holders is that it appears that their CEO is getting more compensation from Microsoft than Nokia, furthering this appearance of impropriety is his decisions that appear to favor Microsoft over Nokia.

Re:Does "class action suit" not mean what it used (2)

21mhz (443080) | more than 2 years ago | (#39890967)

The problem for Nokia share holders is that it appears that their CEO is getting more compensation from Microsoft than Nokia

Source?

So (1)

Lord Lode (1290856) | more than 2 years ago | (#39890531)

So the problem of the claimant is that Nokia is struggling, and his solution is to sue them, which could cause even more struggles?

Re:So (2, Informative)

oh_my_080980980 (773867) | more than 2 years ago | (#39890643)

The solutions is to get reparation for the losses they sustained do to Nokia's poor management.

Stocks (1)

Dan East (318230) | more than 2 years ago | (#39890539)

Sounds to me like some whiny babies shouldn't be investing in the stock market.

Re:Stocks (2, Funny)

oh_my_080980980 (773867) | more than 2 years ago | (#39890657)

You know nothing about investing do you. That or you work for Goldman Sachs and love selling shit investments to your clients.

Translation (1)

bluetorrent (518727) | more than 2 years ago | (#39890543)

... "I was stupid enough to believe a corporation when they claimed to have the magical ability to predict the future! Now the government must protect me from my own brain!"

Re:Translation (0)

oh_my_080980980 (773867) | more than 2 years ago | (#39890719)

So you're all for companies breaking the law.

Re:Translation (1)

Lunix Nutcase (1092239) | more than 2 years ago | (#39890755)

And what law did they break? Ths guy is an idiot for not understanding what a forward looking statement is and tat they are ALWAYS heavily disclaimed. He's clearly too dumb to be an investor.

Re:Translation (1)

Rockoon (1252108) | more than 2 years ago | (#39891063)

If you had not noticed, so is the person you are replying to.

Big Surprise! (1)

Wattos (2268108) | more than 2 years ago | (#39890559)

What is a "Nokia"?

Seriously, the stakeholders can only blame themselves for not seeing this coming.

Re:Big Surprise! (2, Interesting)

oh_my_080980980 (773867) | more than 2 years ago | (#39890667)

Again, management claimed all was right and performance would improve. If management knew this was untrue, then management was lying to investors, which is illegal.

Re:Big Surprise! (0)

Anonymous Coward | more than 2 years ago | (#39890947)

IF they knew it was untrue, but I believe more than likely they'd hoped for a better reception than they got. Look at Moto and HTC, they're pushing decent (all fanboy arguments aside) Android phones and losing money. I doubt their execs were lying when they said they would pull in some cash. The mobile market is tricky right now. Even Samsung who is moving a boat load of kimchee isn't exactly making money hand over fist, and they have massive scale. (Their margins are still quite respectable, mind you, but smartphone competition really is a race to the bottom)

Re:Big Surprise! (1)

ustolemyname (1301665) | more than 2 years ago | (#39890737)

What is a "Nokia"?

A person, just like you and me :P

Unated States of Idiots (0)

Anonymous Coward | more than 2 years ago | (#39890589)

Sue me because I live as human being

Re:Unated States of Idiots (1, Insightful)

oh_my_080980980 (773867) | more than 2 years ago | (#39890683)

Which is fine as long as you are not a CEO that provides false and misleading financial information to investors.

Right... (1)

JustAnotherIdiot (1980292) | more than 2 years ago | (#39890605)

defendants told investors that Nokia's conversion to a Windows platform would halt its deteriorating position in the smartphone market...It did not.'"

And you think hitting them with a lawsuit will?

Re:Right... (1)

O('_')O_Bush (1162487) | more than 2 years ago | (#39890673)

Since when do shareholders care about the company? Tunnel vision for short term share price gains are all they care about, at best. At worst, they are shorting.

Re:Right... (1)

oh_my_080980980 (773867) | more than 2 years ago | (#39890733)

One year is short term?

Re:Right... (0)

Anonymous Coward | more than 2 years ago | (#39890969)

One year is short term?

Yes, very much. in a day and age when great products take hundreds of millions in development costs and several years, 1 year is nothing.

Re:Right... (1)

Shompol (1690084) | more than 2 years ago | (#39891023)

No, one year is long-term. Here's the definition for you [investopedia.com]

However, for the purpose of GP, the lack of long-term interest in corporation is the plague of all publicly-owned businesses everywhere. Why invest in long-term research and growth if you are only going to be a CEO for a few years? Why should investors care if they can dump company stock at the first opportunity?

Re:Right... (1)

oh_my_080980980 (773867) | more than 2 years ago | (#39890703)

It will allow investors to recoup their losses as opposed to keep losing money.

What an idiot. (1)

Lunix Nutcase (1092239) | more than 2 years ago | (#39890619)

I'm pretty sure Nokia, just like any public corporation disclaims any and all of these forward-looking statements. This will get thrown out and the guy should be fined heavily for lawyer's fees and for frivulous litigation.

So.. (1)

synapse7 (1075571) | more than 2 years ago | (#39890629)

So this is what you do when you can't sue for breach of contract?

Nokia's accidental viral marketing campaign (2)

sandytaru (1158959) | more than 2 years ago | (#39890687)

- the one they didn't actually have a hand in, in which an amusing Internet meme claims that the older Nokia phones are virtually indestructable ("Even Chuck Norris can't break one! So uses them for nunchucks!") - is probably going to do more for their brand reputation than any involvement with Microsoft ever could.

Re:Nokia's accidental viral marketing campaign (1)

petermgreen (876956) | more than 2 years ago | (#39891007)

pity the newer ones aren't.

The older nokia phones had user replacable covers that were a good mm or so from the screen. So you could crack the cover (say by sitting on your coat with your phone and keys in the pocket) and the screen would still be fine. with the newer phones that is not the case (mine is on it's third screen)

Oh and with the old phones you could disable the backlight and the screen was still perfectly usable, again can't do that with the modern ones.

This is what happens... (2)

hundredrabh (1531761) | more than 2 years ago | (#39890711)

when you elop(e) with someone MS.
Your shareholders will want divorce and demand alimony.

As a N9 owner (3, Informative)

scorp1us (235526) | more than 2 years ago | (#39890727)

The rough edges of the N9 were minor. It came with real multitasking and copy/paste from the first version. It's a great phone, and despite its rough edges it would have worked out well. There are a few gaps though, not the least bit applications. Nokia makes up for th at by including support for many things right out of the box.

The biggest flaw with the N9 was that the OS was NOT a major OS. The decision to move to WP7, while lamentable was sensible. However I wonder if at the rate of innovation if the N9 would have been where it needs to be today.

The deal that was not struck that should have, was to get Samsung on board and using MeeGo. That would have brought enough attention to get MeeGo established in the mobile marketplace.

Re:As a N9 owner (1)

Microlith (54737) | more than 2 years ago | (#39891043)

The biggest flaw with the N9 was that the OS was NOT a major OS.

But it was ready, with multiple handsets in the pipeline (Lumia hardware was originally Harmattan targeted) and it would have been a stunning, welcome replacement for Symbian at Nokia's high end. I don't think for a moment they would have had trouble creating a userbase for it.

The deal that was not struck that should have, was to get Samsung on board and using MeeGo.

It may have happened, but likely not until well after Nokia themselves had transitioned fully to MeeGo, which hadn't happened when Elop killed everything not Microsoft-dependent.

Re:As a N9 owner (0)

Anonymous Coward | more than 2 years ago | (#39891087)

If this lawsuit is successful then maybe they'll have to go back to the N9! Haha, an N9 owner can dream, right?

There was hardly anything sensible about Nokia switching to the WP platform. There is very little a handset maker can do to make their Windows phone distinctive from the competition. Nokia has their excellent free maps & GPS apps, but that's about it. It would make sense if Nokia had no competitive phone-OS of their own, but the N9 is damn fine and kicks butt against iOS and Android. Only negative reviews for it are "why the hell are Nokia dropping this?!". The "biggest flaw" you mention is actually pretty minor, and that speaks to the quality of the N9's OS.

Re:As a N9 owner (1)

petermgreen (876956) | more than 2 years ago | (#39891109)

The biggest flaw with the N9 was that the OS was NOT a major OS

The thing is I don't see WP7 as a major OS either. MS were late to the "multitouch+decent browser" smartphone market and then threw away the goodwill they had when they threw out all support for applications from thier pre-mulitouch smartphone platforn and replaced it with a locked down .net environment.

Law protect you from being robbed, not suckered (1)

Shompol (1690084) | more than 2 years ago | (#39890921)

Bad management and investment decisions are just that. Taking over a company by proxy without investing a single cent is something Finnish "SEC" should look at closely, if their govt officials weren't all bought and paid for.

Re:Law protect you from being robbed, not suckered (1)

Zero__Kelvin (151819) | more than 2 years ago | (#39891093)

Actually, there are civil and criminal laws. When a lawsuit is filed, they are talking about civil law. That being said, there are also laws against suckering people [wikipedia.org] .

Oh, come on!! (0)

Anonymous Coward | more than 2 years ago | (#39890939)

Everybody now that any mobile OS besides iOS and Android is doomed to extinction, i even dear to say that Andriod will overcome iOS pretty soon

Re:Oh, come on!! (2)

sideslash (1865434) | more than 2 years ago | (#39891019)

Everybody knows that any game console besides Playstation and Nintendo is doomed to extinction

FTFY.

Does nobody else think this is premature? (0)

Anonymous Coward | more than 2 years ago | (#39891039)

In a day and age where great products take hundreds of millions of dollars in development and years to produce, this seems incredibly premature. Nokia just released their first windows phone. Now I don't know if it was a good decision to throw all their chips in on a windows deck, but at least give them 2 to 3 years before claiming complete failure.

This idea of 'everything now' that has risen in the Internet age will be the downfall of strong, long term company development.

Microsoft had a reason to destroy Nokia (4, Interesting)

Sara Chan (138144) | more than 2 years ago | (#39891105)

Microsoft had a great reason to fear, and to conquer, Nokia: the Nokia N900 [wikipedia.org] . The N900 was arguably the best device ever: a full computer in a mobile form factor. It just needed some polishing of the user interface. Had the polishing been done, Nokia could have been on top of the smartphone market.

With the planned successors to the N900, people would no longer need separate phones and computers. They would just have their Nokia N900-successor, carrying that with them all the time. At home, or in the office, they would attach a keyboard wirelessly and plug in a screen--and there is their computer. This would have led to a revolution in the way both computers and phones are considered.

The N900 ran Linux. So the N900 was a vector for getting rid of Windows. Microsoft saw the threat, presumably, and moved to destroy it.

Re:Microsoft had a reason to destroy Nokia (0)

Anonymous Coward | more than 2 years ago | (#39891167)

Have you used the N9? It's an insanely improved N900, without a hardware keyboard.

And Nokia killed it.

Re:Microsoft had a reason to destroy Nokia (0)

Anonymous Coward | more than 2 years ago | (#39891217)

And the N950 was going to be the N9 with a h/w keyboard...until it got eloped.

Fucked company (0)

Anonymous Coward | more than 2 years ago | (#39891161)

Who cares?

If Nokia wants to be relevant, they're actually going to have to make products that somebody wants and I don't think windows phones are going to do that.

They would have better luck licensing AROS or NetBSD.

Somebody sounds impatient (1)

KlomDark (6370) | more than 2 years ago | (#39891181)

It's a little bit of a longer game right now. Microsoft/Nokia haven't even fired up the main thrusters for this round. Until Windows 8 is ready, there's not going to be much happening. Once that is ready, and they come out with all guns blazing, it's going to be an interesting spectacle.

For a long while it's just been Microsoft wanting to maintain it's dominant position, but this time it's a battle for the basic survival of Microsoft. They are going to fight, and fight hard. They may win, they may lose. While Balmer's running the ship these days, I'm sure he's having lots of conversations with Bill Gates to plan strategy.

With Steve Jobs out of the picture, Apple is out of focus for this battle, but have the upper hand at this point. but executing further is going to be a test of Cook. Not the best strategic time for them to do a two front battle against Microsoft and Google.

Google/Android have serious clout in the #2 position, and I'm not quite sure where this is going to end up for them, especially with the current Oracle attack on the Java internals of the Android OS. Anything can happen there.

So there's a lot of chaos in the market, and Microsoft is good at harnessing chaos to find advantages.

So if I was this investor guy, I'd just shut up for now and enjoy the ride, and learn a little about long term investing. He's still got an excellent potential of making his money back and then some, if he just has patience. But sounds like he might be too impatient and focused on the next quarter. While there's easy money to be made in short term investing, the lion's share of the money goes to the long term investors - Just ask Warren Buffet.

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