Jonathan Stempel

NEW YORK, (Reuters) – A U.S. judge rejected BlackBerry (NYSE.) Ltd’s attempt to dismiss a lengthy lawsuit alleging it defrauded shareholders through inflating success and profitability for its BlackBerry 10 smartphones. He also indicated that the case might go to trial next fall.

U.S. District Judge Colleen McMahon in Manhattan said “genuine issues of material fact” remained in dispute in the more than eight-year-old case, including over BlackBerry’s accounting, and that “battle-of-the-experts” issues precluded her from ruling for one side or the other.

Although the BlackBerry 10 received positive reviews from critics and was well-received by the general public, Android-based smartphones were preferred over Apple Inc (NASDAQ;)’s iPhone. This eventually led to BlackBerry’s decision in 2016 to cease making phones.

Waterloo (Ontario)-based Shareholders accused BlackBerry 10, which focuses now on cybersecurity, concealing its true sales prospects through public statements in 2013. The result was an inflated share price.

McMahon claimed that criminal trials will still take precedent over civil trials during the COVID-19 pandemic. But, because it is older she would give priority to the BlackBerry case.

According to the judge, her best guess was that the trial would begin either in September or October.

BlackBerry and its attorneys did not respond immediately to inquiries for comment. Similar requests were not answered by the shareholders’ lawyers.

The former BlackBerry Chief Executive Thorsten Hines, the former Chief Financial Officer Brian Bidulka, and Steve Zipperstein are also defendants.

McMahon struck four BlackBerry misstatements in her 24 page decision. She claimed that shareholders had waited too long before objecting to them.

Pearlstein v BlackBerry Ltd., U.S. District Court Southern District of New York. 13-07060.