3226701 Canada Inc. v. Qualcomm, Inc.

Updated: August 31, 2018

Status: Ongoing Case

On February 19, 2016, Labaton Sucharow was appointed as co-lead counsel for lead plaintiffs in a securities class action against Qualcomm, Inc. (Qualcomm), a telecommunications company, and certain of its officers. On March 17, 2017, lead plaintiffs filed a second amended complaint. Lead plaintiffs allege that Qualcomm made false and misleading statements, and concealed material facts regarding the company’s business practices. Specifically, lead plaintiffs allege that Qualcomm made false and/or misleading statements and/or failed to disclose that the company was experiencing unprecedented overheating issues related to the development and manufacturing of the company’s flagship microprocessor, the Snapdragon 810. As a result of these thermal issues, the Snapdragon 810 was dropped by a number of Qualcomm’s most important customers, including Samsung.

The district court dismissed lead plaintiffs’ claims on November 29, 2017, which the plaintiffs appealed to the Ninth Circuit in December 2017.

The appeal has been fully briefed. The case is 3226701 Canada Inc. v. Qualcomm, Inc., No. 15-cv-02678-MMA-WVG (S.D. Cal.). Labaton Sucharow represents the lead plaintiff The Public Employees Retirement System of Mississippi. The defendants are Qualcomm, Inc.; Steven M. Mollenkopf, Qualcomm’s Chief Executive Officer; George S. Davis, Qualcomm’s Chief Financial Officer; Derek K. Aberle, Qualcomm’s President; Venkata S.M. Renduchintala, an Executive Vice President at Qualcomm; and Tim McDounagh, Qualcomm’s Vice President of Marketing.