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Holzer Holzer & Fistel LLC an Atlanta-based law firm issued a promotional press release regarding Research in Motion (NASDAQ:RIMM) read the snip
“….is investigating potential violations of the federal securities laws by Research In Motion Limited (“RIM” or the “Company”) (NASDAQ: RIMM). The investigation focuses on whether a series of statements made between December 16, 2010 and April 28, 2011, inclusive, regarding RIM’s business, its prospects and its operations were materially false and misleading at the time they were made. Specifically, the investigation focuses on, among other things, whether the Company knew but failed to adequately disclose that it was experiencing problems associated with an aging product line which were negatively impacting RIM’s business and margins. “
RIM countered and said they would vigorously defend. What else would RIM say? At this point. Until all the facts come to light it will be hard to come to a definitive conclusion. In the meantime Holzer wants investors who “purchased RIM common between December 16, 2010 and April 28, 2011, inclusive and have questions concerning your legal rights, you are encouraged to contact Holzer Holzer & Fistel, LLC and its attorneys Michael I. Fistel Jr., Esq. or Marshall P. Dees, Esq. via email at mfistel@holzerlaw.com, or mdees@holzerlaw.com, or via toll-free telephone at (888) 508-6832.”
The investigation will be interesting in the nuances. You have a technology company operating in a cut-throat environment. Product life cycles have a habit of declining quickly at best of times. Surely investors must know this generically. In this context did executives know the product death cycle was accelerating more quickly than normal and then fail to disclose.
Lawyers and investor relations professionals will watch this one closely.
Disclosure: “George Gutowski” writes from a “caveat emptor perspective”. I hold no positions in stocks mentioned in this post. I have no plans to initiate new positions within the next 72 hours. Also I did not buy or sell any positions in RIM during the time frames indicated.
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