Nokia Corporation

On March 21, 2019, the Company disclosed that it had been, “made aware of certain practices relating to compliance issues at the former Alcatel Lucent business [acquired by Nokia November 2016] that have raised concerns.'' Nokia then advised investors that it had initiated an internal investigation and that it was cooperating with regulatory authorities to resolve the matter. On this news, shares of Nokia fell $0.38 per share, or over 6%, to close at $5.88 on March 22, 2019, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Alcatel-Lucent had certain compliance issues; (2) that, as a result, the Company would be subject to regulatory scrutiny; (3) that, as a result, the Company was reasonably likely to face penalties and fines; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.