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  1.    #1

    Extract from
    Sierra Wireless is being sued because introducing the Voq Smartphone was flawed and its business model was not working.

    Lerach Coughlin Stoia Geller Rudman & Robbins LLP (“Lerach Coughlin”) announced that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Sierra Wireless, Inc. (“Sierra”) (NASDAQTongue TiedWIR) common stock during the period between January 28, 2004 and January 26, 2005 (the “Class Period”).


    The Complaint alleges that, throughout the Class Period, defendants issued numerous statements concerning the Company’s performance and future prospects. As alleged in the Complaint, these statements were materially false and misleading when made as they failed to disclose the following material adverse facts which were then known to defendants or recklessly disregarded by them: (i) that Sierra’s strategy to correct its deficiency in technology as compared to its competitors by introducing the Voq Smartphone was flawed and its business model was not working; (ii) that Sierra was facing increasing competition, intensified by its failure to enter into the WCDMA (wideband code-division multiple access) market; (iii) that Sierra’s recent venture into the Smartphone market with the introduction of its new Voq line was a serious misstep, as it did little to add revenue and further seriously harmed Sierra’s relationship with a prime customer palmOne as its Voq Smartphone would compete with palmOne’s Treo – the product for which Sierra was a supplier; (iv) that Sierra’s dependence on revenue from palmOne in its original equipment manufacturer (“OEM”) business – selling embedded modules that allow other device manufacturers to give their products wireless connectivity – was substantially greater than had been reported; and (v) that Sierra’s customers were materially over-inventoried, which would lead to greatly diminished orders and sales in future quarters.
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  2. #2  
    Eh... they released a smartphone that competed directly with the product of the biggest customer. Doesn't seem to smart to me...especially if the product is a dud!
    aka Gfunkmagic

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