Nokia faces shareholder suit over Lumia 900 rebate

Shareholder claims payments tanked stock

Nokia has become the target of a shareholder lawsuit over the company's handling of its Lumia 900 smartphone release.

Shareholder Robert Chmielinski is asking a US district court in New York to conduct a jury trial to determine whether the company deceived shareholders in the run-up to the handset's release and its immediate aftermath.

The filing claims that the company misrepresented its readiness for the release and overstated how well the retail launch had gone.

Released in late April, the Lumia 900 had received a strong reception in the US, with high demand causing product shortages in some locations and helping to push the UK release of the handset to 14 May.

But a glitch with the Windows Phone operating system led the company to issue $100 rebates to users in the US and, according to the suit, drive down the company's share values. The suit claims the company knew of the software issue prior to the release.

"Statements... were materially false and misleading because Nokia's migration to a Windows platform was not going as well as represented," the filing (PDF) reads.

"The Lumia 900 had a glitch which forced Nokia to offer a $100 credit and earlier Lumia offerings were not as well accepted as represented."

Nokia said in a statement that it was aware of the filing and would be contesting the suit.

"Nokia is reviewing the allegations contained in the complaint and believes that they are without merit," the company said.

"Nokia will defend itself against the complaint."