Earlier this week, news broke that litigation firm Holzer Holzer & Fistel is investigating RIM for possible securities law violations. RIM has responded with:
WATERLOO, ONTARIO–(Marketwire – May 27, 2011) – Research In Motion Limited (“RIM”) (NASDAQ:RIMM)(TSX:RIM) today confirmed it intends to vigorously defend against a purported class action lawsuit filed against the Company and certain of its officers in the United States District Court for the Southern District of New York. The lawsuit alleges that during the period from December 16, 2010 through April 28, 2011, the Company and certain of its officers made materially false and misleading statements regarding the Company’s financial condition and business prospects, and seeks unspecified damages on behalf of an alleged class of purchasers of the Company’s common shares during this period. RIM believes that the allegations are without merit.
It is going to be interesting to see the outcome of this matter. Palm also fell victim to this litigation firm when they were getting purchased by HP. Do you think RIM will be found guilty or will go free?