Research In Motion: Lawyers Attack
Research in Motion’s (NASDAQ:RIMM) apology and free apps wasn’t good enough for consumers this time. On Wednesday, U.S. and Canadian consumers filed dual lawsuits (one in Santa Ana’s federal court and the other in Quebec Superior Court) on behalf of all U.S. and Canadian BlackBerry owners, respectively, against Research in Motion (NASDAQ:RIMM) for its recent four-day service outage on BlackBerry devices worldwide.
The U.S. suit accuses Research in Motion (NASDAQ:RIMM) of breach of contract, negligence and unjust enrichment.
With the system failure, tens of millions BlackBerry users across five continents could not use their email, instant messaging or web browsing.
Once service had been restored, Research In Motion’s co-CEOs apologized for the outages but didn’t say what had caused the problem. It was a huge embarrassment to the company and one that is challenging them to play catch up with its smartphone rivals including Apple (NASDAQ:AAPL).
However, it didn’t happen this week.
On Wednesday, Research in Motion (NASDAQ:RIMM) announced plans to delay the launch of its BlackBerry PlayBook OS 2.0 tablet until February 2012. Citing a desire to “have fully met the expectations of our developers, enterprise customers and end-users” for the tablet before launching it, the company faces another step backward as Amazon (NASDAQ:AMZN) prepares to unveil its well-received Kindle Fire tablet in mid-November.
Unless there’s something up Research in Motion’s sleeve, there’s plenty of dark days ahead for this company. Will they be able to recover?
- Research in Motion’s (NASDAQ:RIMM) stock closed down 7.48% to $20.89 on the news. Shares are down 64.03% year to date. The stock has traded in a 52-week range between $20.50 and $69.30.
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