This morning, BlackBerry let everyone know if you write false, misleading information, they wont put up with it. Yesterday, $BBRY's stock took a huge tumble after a report by Detwiler Fenton was released claiming a high return rate on the BlackBerry Z10 in the U.S. The stock dropped 8% and immediately got the attention of the tech media.
The problem with this report is that the firm behind it refuses to give details into how they came up with these claims. That usually tends to raise a red flag as it's hard to believe a report that has absolutely no back up information.
BlackBerry has now responded with a statement that they will seek an SEC and Ontario Securities Commission's review of the false report. This is the first time BlackBerry takes such strong action to an analyst's report, but it's understandable as it could definitely affect sales of the Z10, and upcoming Q10 devices. The full press release is posted below.
BlackBerry Seeks U.S., Canadian Review of False Reports on Return Rates
WATERLOO, ONTARIO--(Marketwired - April 12, 2013) - BlackBerry® (NASDAQ: BBRY)(TSX: BB), a world leader in mobile communications, today said it would seek Securities and Exchange Commission and Ontario Securities Commission review of a false and misleading report about retail return rates for the Company's new BlackBerry Z10 smartphone.
"Sales of the BlackBerry® Z10 are meeting expectations and the data we have collected from our retail and carrier partners demonstrates that customers are satisfied with their devices," said BlackBerry President and CEO Thorsten Heins. "Return rate statistics show that we are at or below our forecasts and right in line with the industry. To suggest otherwise is either a gross misreading of the data or a willful manipulation. Such a conclusion is absolutely without basis and BlackBerry will not leave it unchallenged."
BlackBerry and Verizon Wireless, the largest U.S. carrier, on Thursday refuted claims from research and investment firm Detwiler Fenton that BlackBerry Z10 devices were being returned in unusually high numbers. Detwiler Fenton refused to make either its report to investors or its methodology available to BlackBerry, even after the Company said the firm's findings were "absolutely false."
BlackBerry Chief Legal Officer Steve Zipperstein said: "These materially false and misleading comments about device return rates in the United States harm BlackBerry and our shareholders, and we call upon the appropriate authorities in Canada and the United States to conduct an immediate investigation. Everyone is entitled to their opinion about the merits of the many competing products in the smartphone industry, but when false statements of material fact are deliberately purveyed for the purpose of influencing the markets a red line has been crossed."
Zipperstein said BlackBerry would present its formal request to U.S. and Canadian regulators in the next several days.