Nokia 2012 Annual Report Download - page 180

filed a complaint with the ITC based upon the same four patents and sought to ban Nokia from
importing certain Lumia smartphones into the United States. The ITC action was instituted by the ITC
on January 13, 2012 and a target date for completion was July 18, 2013.
Before any of the cases reached final judgment, Nokia and Digitude resolved all patent litigation
between the companies, including withdrawal by Digitude of its complaint in the ITC and its action
pending in the District of Delaware. The structure of the settlement is that Digitude entered into a
Patent Purchase Agreement with third-party RPX whereby the asserted patents were sold to RPX, and
Digitude entered into a release agreement directly with Nokia. Nokia has a Membership and License
Agreement between itself and RPX which covered the asserted patents.
Securities Litigation & ERISA
On February 5, 2010 a lawsuit was initiated by a municipal retirement fund in the United States District
Court for the Southern District of New York on behalf of itself, and was seeking class action status on
behalf of purchasers of American Depository Shares or ADS’s, of Nokia between January 24, 2008
and September 5, 2008 inclusive, to pursue remedies under the Securities and Exchange Act of 1934
(the “Exchange Act”). An amended complaint was filed in the same lawsuit on August 23, 2010 by a
different municipal retirement fund that was appointed lead plaintiff. The complaint generally alleged
that certain officers and executives of Nokia Corporation violated the Exchange Act when they
allegedly failed to disclose materially adverse facts about the Company’s business in a timely manner,
including allegations of failures to disclose product launch delays, intense price competition, loss of
market share to competitors and changing worldwide market conditions, all of which were adverse to
the Company. After extensive proceedings, the case was dismissed by the Court on December 12,
2012. No appeal was taken and the dismissal became final on January 12, 2013.
On May 3, 2012 a class action complaint entitled Chmielinski v. Nokia Corporation was filed in the
United States District Court for the Southern District of New York naming Nokia Corporation and two of
its executives as defendants. In summary the complaint alleged that from October 26, 2011 to April 10,
2012, false positive statements were made about Nokia’s financial outlook and growth prospects in
relation to the conversion to a Windows Phone-based operating system for smartphones. After
investigation, the plaintiffs agreed to dismiss the case against all defendants without any compensation
being paid to any plaintiff or their counsel by any defendant. On December 12, 2012 the complaint was
withdrawn and dismissed.
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
shares. The plaintiffs allege that the defendants failed to comply with their statutory and fiduciary duties
when they failed to remove Nokia shares 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 shares ownership, and as a result of that
knowledge, the named defendants should have removed Nokia shares as a Plan investment option.
The plaintiff’s claims were dismissed in their entirety on September 5, 2011. On September 13, 2012
the Court denied Plaintiffs’ motion for leave to amend their complaint a second time and entered
judgment in favor of Nokia. On October 23, 2012 the plaintiffs filed an appeal of the District Court’s
order granting judgment in favor of Nokia. A decision on the Appeal is expected in 2013. We believe
that the allegations are without merit, and we will continue to defend ourselves against this action.
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