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BlackBerry (BB) Settles Class-action Lawsuit, to Pay $165M

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BlackBerry Limited BB recently reached a settlement regarding a securities class action lawsuit filed against the company and some former officers in the U.S. District Court for the Southern District of New York.

Pearlstein v. Blackberry Limited, et al., Case No. 13 Civ. 7060 (CM) (KHP) was settled following a mediation process involving a total cash payment of $165 million by BlackBerry to settle the plaintiffs’ claims who purchased or otherwise bought BlackBerry shares between Mar 28, 2013, and Sep 20, 2013 on the Nasdaq.

The court has allowed the parties' appeal to suspend any further proceedings, pending approval of the final settlement. BlackBerry added that the allegations were without merit, but the company is in favor of settling the long-drawn litigation as it is in the company’s best interests.

Per a Reuters report, the lawsuit alleged that BlackBerry tricked shareholders by over-hyping BlackBerry 10’s success and profitability. The lawsuit was filed in October 2013.

BlackBerry also added that the settlement amount of $165 million would be absorbed into its results of operations for the fiscal quarter ending May 31, 2022. The company does not anticipate recovering any portion of this settlement amount from insurance.

Headquartered in Waterloo, Canada, BlackBerry provides intelligent security software and services to enterprises and governments worldwide. It offers devices and software platforms for managing security, mobility and communications among hardware, programs, mobile apps and the Internet of Things.

BlackBerry Limited Price and Consensus

BlackBerry Limited Price and Consensus
BlackBerry Limited Price and Consensus

BlackBerry Limited price-consensus-chart | BlackBerry Limited Quote

At present, BlackBerry carries a Zacks Rank #3 (Hold). Shares of BB have lost 25.8% against the industry’s gain of 7.6% in the past year.

Key Picks

Some better-ranked stocks from the broader technology sector are Broadcom AVGO, Apple AAPL and Arrow Electronics ARW. All stocks carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $35.49 per share, up 7.4% in the past 60 days. AVGO’s long-term earnings growth rate is pegged at 14.5%.

Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 1.9%. Shares of AVGO have increased 24.3% in the past year.

The Zacks Consensus Estimate for Apple’s fiscal 2022 earnings is pegged at $6.16 per share, up 0.2% in the past 60 days. The long-term earnings growth rate is pegged at 12.5%.

Apple’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average being 20.3%. Shares of AAPL have rallied 29.4% in the past year.

The Zacks Consensus Estimate for Arrow Electronics 2022 earnings is pegged at $18.48 per share, up 4.5% in the past 60 days. The long-term earnings growth rate is 3.1%.

Arrow Electronics’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average being 19.1%. Shares of ARW have lost 3.6% in the past year.


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BlackBerry Limited (BB) : Free Stock Analysis Report

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