Nokia vows to fight US investors' law suit

Nokia is currently fighting several legal battles

Nokia has said that it will fight an action filed against the company by US investors in the company's American Depository Receipts (ADRs).

The firm said in a statement that it had reviewed the allegations contained in the complaint and believes that they are without merit. Nokia said that it intends to "defend itself against the complaint vigorously".

The suit alleges that Nokia hid production delays in 2008 that caused phone prices and operating margins to decline, and instead focused on the expected launch of several new handsets.

The investors claim that the company was aware of these delays, but failed to make them public when discussing sales of devices between 24 January and 5 September 2008.

An ADR allows US investors to buy shares in foreign companies that trade on the US markets without the need for cross-border or cross-currency transactions. They are priced in US dollars and are traded like shares.

Nokia's ADR price dropped $0.35 to $13.39 (£8.59) on the New York Stock Exchange after news of the lawsuit emerged.

The complaint represents yet another legal challenge for the handset giant. Apple is suing Nokia over 13 alleged patent infringements after Nokia issued its own action against Apple in October.

Nokia has since filed two more suits against Apple asking US courts to block imports of Apple devices into the US while also seeking financial recompense for the alleged use of Nokia technologies without a licence.