Nokia Corporation (ADR) (NYSE:NOK) Continued to Slide, Hits 17-Year Lows
Nokia Corporation (ADR) (NYSE:NOK) fell 6.13% as the Company was charged with a complaint on violations of the Securities Exchange Act of 1934 by certain of its officers and directors. The Company has been alleged with charges of providing wrong information to the investors during the Class Period that Nokia’s conversion to a Windows platform would halt its deteriorating position in the smartphone market. But when the Company disclosed that its first quarter performance would be worse than expected, everything came into light.
Nokia expected its first quarter 2012 non-IFRS Devices & Services operating margin to fall by 3%, and projected first quarter 2012 Devices & Services net sales of €4.2 billion. It also disclosed a glitch in its newest Windows offering – the Lumia 900. Nokia had to immediately offer customers an automatic $100, making the phone essentially free.
The investors of the Nokia publicly traded securities during the Class Period now filed a class-action lawsuit seeking to recover damages caused by the officers and directors of the Company.
Also, last Friday, Standard and Poor’s downgraded the company’s credit rating by one notch and warned that it may reduce it again unless the company’s performance improves. The rating agency said it was lowering the Finnish company’s long-term corporate credit rating to BB+ from BBB- and its short-term corporate credit rating to B from A-3.
Nokia Corporation closed the trading session at $3.15 representing a slip of 6.13% in its prices after the complaint was charged against the Company. Shares of the Company exchanged hands on a high volume of 51.13 million shares as against its average trading volume of 44.13 million shares. Shares of NOK have slumped 34.65% so far this year and 66% over the past one year. Moreover, the stock made 17-year low of $3.12 on Friday. For the week, the stock slumped 14%.