U.S. District Judge Richard Sullivan in Manhattan has granted BlackBerry’s request to dismiss a U.S. shareholder class-action lawsuit.

Judge Sullivan found the plaintiffs failed to adequately allege that the company or various executives had made deliberate and material misstatements.

BlackBerry had clearly failed to stay current in the market, which lead them to “have paid a price for their mistakes by way of demotions, terminations and sizable financial setbacks,” said Sullivan. “Nevertheless, corporate failings alone do not give rise to a securities fraud claim.”

The class-action lawsuit was initially filed in 2011 by investor Robert Shemian, who sought to recover losses on behalf of U.S. shareholders who bought BlackBerry stock from December 2010 through June 2011.

The suit alleged that the BlackBerry’s setbacks were known by the company and its executives, who then allegedly began misleading investors that bought its stock at inflated prices.

via Reuters