blackberry ltd (formerly known as RIM), formerly known as a maker of enterprise smartphones, has finally decided to settle a lawsuit more than eight years old that was filed by its shareholders in 2013. The company has been accused of fraud by overestimating demand for the BlackBerry Z10 and Q10 and the alleged profit that could be made from their sales.
In the lawsuit, shareholders allege that the company’s omission of actual sales prospects for BlackBerry 10-series smartphones in the company’s public statements led to inflated share prices.
US District Judge Colleen McMahon granted a motion Wednesday by attorneys and BlackBerry shareholders to postpone a scheduled trial so they can reach an out-of-court settlement in the class action lawsuit, Reuters reported.
Despite positive reviews from experts, the BlackBerry 10 operating system has not gained popularity among users who prefer Apple’s iPhone and Android-based smartphones. As a result, in 2016, BlackBerry announced the decision to stop producing smartphones and is now engaged in cybersecurity solutions.
The class action lawsuit against BlackBerry began in October 2013. Defendants in the lawsuit include former BlackBerry CEO Thorsten Heins, as well as former CFO Brian Bidulka and general counsel Steve Zipperstein.