Remember when Boston-based firm Detwiler Fenton published a report that the Z10 was being returned at an abnormally high rate? BlackBerry stock declined 7% and the company wasn’t thrilled.
BlackBerry blasted the report they asked for federal investigation. According to The Boston Business Journal, justice might be on the way.
“A former executive at a Verizon Wireless retailer was arrested Thursday for allegedly selling confidential sales and product information to the Boston financial services firm Detwiler Fenton, including information that caused BlackBerry’s stock price to plummet in April 2013.
“James Dunham, the former chief operating officer of Connecticut company Wireless Zone, allegedly secretly provided the information to Detwiler for more than three years. In exchange, Detwiler paid Dunham $2,000 per month, for a total of approximately $61,000, according to a criminal complaint lodged in federal court.
“According to the complaint, Dunham was the source behind a controversial research note published by Detwiler analyst Jeff Johnston in April 2013. The note said that BlackBerry’s Z10 smartphone, which was new at the time, was being returned to stores by customers at an unusually high rate. BlackBerry’s stock price fell more than 7 percent in one day following the publishing of the note”
The report doesn’t name any companies, but The Boston Business Journal has been able to identify the companies by comparing information in the complaint with publicly available financial records.