A lawsuit brought against BlackBerry by shareholders alleging that BlackBerry and its executives knowingly misled investors about the sale performance of the BlackBerry Z10 in order to artificially inflate its stock price, has been kicked back to a lower-court judge for further review in light of what plaintiffs claim is new evidence.
In Wednesday's decision, the 2nd Circuit upheld U.S. District Judge Thomas Griesa's March 2015 dismissal of the lawsuit for the failure to allege that BlackBerry and its executives knowingly misled investors.
The three-judge appeals panel said the plaintiffs' claims amounted to "fraud by hindsight" by saying that the defendants must have known the device would be unsuccessful.
The court nonetheless said the plaintiffs could try to persuade Griesa to let them amend their complaint in light of new legal developments and evidence that the plaintiffs said would support their claims.
The appeals court said if Griesa refuses to let the plaintiffs amend their complaint, he should explain his reasons, which he had not done before.
When the original dismissal came through, U.S. District Judge Thomas Griesa noted 'the plaintiffs did not show BlackBerry believed its accounting practices were wrong when it devised them, and that it is not enough to show they were wrong only in hindsight'. While it's certainly not a grand slam win for BlackBerry as of yet, there's still a great chance the whole thing will be dismissed.