Faruqi & Faruqi, LLP Announces Investigation Of Research In Motion Limited
Faruqi & Faruqi, LLP, a national law firm concentrating on investor rights, consumer rights and enforcement of federal antitrust laws, is investigating potential wrongdoing at Research In Motion Limited (“RIM” or the “Company”) (NasdaqGS: RIMM). Faruqi & Faruqi, LLP seeks to determine whether RIM violated federal securities laws in connection with statements made to the Company’s shareholders.
Request more information now by clicking here: www.faruqilaw.com/RIMM.
The investigation focuses on whether certain individuals violated federal securities laws by, among other things, failing to disclose that: (1) the Company’s aging product line and inability to introduce new products to the market was negatively impacting the Company’s business and margins; (2) the Company was unable to introduce new products in a timely manner, which hurt the Company’s ability to maintain its market share in the smartphone market; (3) the Company’s resources had become limited as it attempted to develop new products; (4) the Company experienced lower-than-expected Blackberry smartphone sales and shipments in the United States and Latin America; and (5) the Company relied on sales of older-model smartphones at lower retail price points than their newer, but delayed, products.
On March 24, 2011, the Company announced disappointing guidance and financial results from the fourth quarter and fiscal year 2011, which caused the price per share of RIM common stock to drop 11.2% on March 25, 2011. On April 28, 2011, RIM updated its first quarter 2012 guidance with lower earnings per share (“EPS”) estimates than what was projected the prior month, which the Company attributed to lower shipment volumes of Blackberry smartphones. In response to the bad news numerous analysts downgraded RIM. On June 18, 2011, shares of RIM dropped another 21.5% to $27.75 (its lowest price since September 12, 2006) after revealing quarterly revenue might drop for the first time in nine years.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV