(Reuters) – A US judge has dismissed a lawsuit accusing the Finnish telecommunications company Nokia of deceiving shareholders by hiding problems with integrating the former Alcatel-Lucent and its readiness to become a leader in 5G technology.
In a decision On Monday night, U.S. District Judge Andrew Carter in Manhattan said that Clyde Waite, the plaintiff who led the proposed class action lawsuit, did not identify any Nokia statements that were false or misleading when they arrived.
He also said that it was unlikely that Nokia's statements would have misled reasonable investors, given the company's "many and continuous reports on Alcatel integration and 5G progress."
Judge Carter rejected the lawsuit with prejudice, which means that it can not be resubmitted.
Mr. Waite's lawyers did not immediately respond to requests for comment outside of business hours. Attorneys for Nokia and former CEO Rajeev Suri, who was also the respondent, did not immediately respond to similar requests.
The dispute began after Nokia announced in March 201
In October 2019, Nokia lowered its profit outlook and issued its dividend, citing the need to spend more money in the midst of a "competitive" intensity of 5G market share.
The price of Nokia's US depository receipts fell by about 6% immediately after announcements in March and almost 24% after revelations in October.
Earlier this month, Nokia said it expects to lay off 10,000 jobs from its approximately 90,000 employees within two years, as new CEO Pekka Lundmark tries to increase margins and catch up with rivals in 5G.
Nokia's rivals include Sweden's Ericsson and China's Huawei Tea
The case is In connection with Nokia Corporation Securities Litigation, U.S. District Court, Southern District of New York, No. 19-03509 .