Nokia denies US allegations of misleading investors

US investors claim Nokia withheld important information

Mobile phone maker Nokia has said it will defend itself "vigorously" against a class action filed in New York alleging the firm misled investors.

The action, filed on Friday by the City of Roseville Employees' Retirement System, claims Nokia failed to disclose facts about its financial position.

The investors claim they lost money between 24 January 2008 and 5 September 2008 as a result.

Nokia said the allegations were "without merit".

Price cuts

The action, brought against Nokia and its chief executive Olli-Pekka Kallasvuo, former finance chief Richard Simonson and head of phone business Kai Oisamo, alleges that the defendants misled investors on three counts.

First, Nokia gave unreasonable statements about new product launches given component shortages and manufacturing problems.

Second, it failed to disclose that it was losing market share because of price cuts by competitors.

Third, Nokia kept quiet about slashing its own prices during 2008.

When the company finally disclosed this information on 5 September, the claimants say, Nokia American Depositary Shares (ADS) fell 8%.

These shares are issued by US banks to allow US investors to buy stakes in overseas companies more easily.

The claimants are seeking damages for all investors in Nokia ADS during the period in question.

Nokia dismissed the allegations. In a statement the firm said: "Nokia has reviewed the allegations contained in the complaint and believes that they are without merit. Nokia intends to defend itself against the complaint vigorously."