Tuesday, 30 March 2021 16:41

Shareholders bid for class action against Nokia over Alcatel-Lucent integration fails

Shareholders bid for class action against Nokia over Alcatel-Lucent integration fails Pixabay

A move for a class action by US shareholders against Finnish telecommunications equipment provider Nokia, accusing it of defrauding them by not revealing issues in integrating Alcatel-Lucent into its business and its readiness to be a 5G leader, has been thrown out of court.

US District Judge Andrew Carter dismissed the case with prejudice which means it cannot be litigated again, Reuters reported.

He said the main plaintiff, Clyde Waite, had not been able to show that Nokia had made any false or misleading statements.

The Finnish firm has not made any statement about the outcome in a Manhattan courtroom as yet.

The case was kicked off two years ago when Nokia indicated it had told regulators about "compliance issues" at Alcatel-Lucent which it acquired in 2016 for €15.6 billion (A$24 billion).

Lucent was the last end-to-end telecommunications firm in the US and its purchase by France-based Alcatel put paid to any American hopes of playing a role in the 5G market.

In October 2019, Nokia reported that profits would be lower and suspended a dividend, saying it needed to spend more to gain 5G market share.

The price of the firm's American depositary receipts fell by about 6% after the March revelation and a further 24% after the statement made in October.

The 5G market is dominated by China's Huawei, Sweden's Ericsson, Nokia and China's ZTE, with the first three companies holding most of the market.

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Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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