Nokia 2011 Annual Report Download - page 190

experiencing significant software-related problems with the development of its Symbian operating
system, which were delaying scheduled product launch dates; (ii) Nokia was allegedly losing market
share because of intense price cuts by its competitors; and (iii) the dynamics of the emerging Chinese
market for mobile phones were changing. The plaintiffs claimed that as a result of the above
allegations, the price of Nokia ADSs dropped substantially.
The plaintiff’s claims were dismissed in their entirety on September 5, 2011 against Nokia Corporation
and the three former executives. The plaintiff’s deadlines to amend their complaint or appeal the
dismissal have passed and the decision is final.
In addition, on April 19, 2010 and April 21, 2010, two individuals filed separate putative class action
lawsuits against Nokia Inc. and the directors and officers of Nokia Inc., and certain other employees
and representatives of the company, claiming to represent all persons who were participants in or
beneficiaries of the Nokia Retirement Savings and Investment Plan (the “Plan”) who participated in the
Plan between January 1, 2008 and the present and whose accounts included investments in Nokia
stock. The plaintiffs allege that the defendants failed to comply with their statutory and fiduciary duties
when they failed to remove Nokia stock as a plan investment option. The cases were consolidated and
an amended consolidated complaint was filed on September 15, 2010. The amended complaint
alleges that the named individuals knew of the matters alleged in the securities case referenced above,
that the matters significantly increased the risk of Nokia stock ownership, and as a result of that
knowledge, the named defendants should have removed Nokia stock as a Plan investment option. The
plaintiff’s claims were dismissed in their entirety on September 5, 2011. The plaintiffs’ motion for leave
to amend their complaint a second time is pending before the Court.
We believe that the allegations described above are without merit, and we will continue to defend
ourselves vigorously against this action.
Agreement Related Litigation
We are also involved in arbitrations and several lawsuits with Basari Elektronik Sanayi ve Ticaret A.S.
(“Basari Elektronik”) and Basari Teknik Servis Hizmetleri Ticaret A.S. regarding claims associated with
the expiration of a product distribution agreement and the termination of a product service agreement.
Those matters have been before various courts and arbitral tribunals in Turkey and Finland. Basari
Elektronik claims that it is entitled to compensation for goodwill it generated on behalf of Nokia during
the term of the agreement and for Nokia’s alleged actions in connection with the termination of the
agreement. The compensation claim was dismissed by the Turkish courts, and Basari Elektronik filed
for arbitration in Helsinki and Turkey. In October 2009, Basari Elektronik withdrew from the arbitration
in Helsinki and Nokia was awarded all costs in that matter. In 2011, the arbitration panel in Istanbul
Turkey unanimously ruled in favor of Nokia and denied Basari Elektronik any relief. Basari Elektronik
appealed that ruling to the Turkish Courts.
We believe that the allegations described above are without merit and we will continue to defend
ourselves vigorously against these actions.
Product Related Litigation
Nokia and several other mobile device manufacturers, distributors and network operators were named
as defendants in a series of class action suits filed in various US jurisdictions. The actions were
brought on behalf of a purported class of persons in the United States as a whole consisting of all
individuals that purchased mobile devices without a headset. In general, the complaints allege that
handheld cellular telephone use causes and creates a risk of cell level injury and claim the defendants
188