The world's largest mobile phone maker Nokia said it would defend itself vigorously against allegations that it hid news of supplier shortages and price cuts, misleading investors as to the true state of its business.
Law firm Coughlin Stoia filed a suit last week in the US District Court for the Southern District of New York on behalf of a city pension fund and others who bought shares between 24 January and 5 September 2008.
The law firm alleged that Nokia failed to disclose manufacturing and supply shortage problems, that it was losing market share, and that it had had to cut prices, lowering the average selling price per user, thus breaching securities fraud rules.
When Nokia cut its market outlook on 5 September 2008, its share price dropped by about 8%, which plaintiffs are seeking to recover.
"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," the company said in a statement.