A BlackBerry? Never heard of it. 

How many days have you lived forgetting that BlackBerry was even a thing? I can’t even tell you how many days for me, but today… a sexual harassment case has us all remembering. In short, BlackBerry’s stock surged nearly 10% yesterday after a California judge effectively swiped left on some of the claims in a workplace harassment and pay discrimination lawsuit. Again, this surge wasn’t because of new sales, new technology, or gaining market share… the stock bolted because some poor soul (who’s probably guilty anyway) got off easy. 

(Source: Giphy) 

Simply put, the lawsuit, filed by former BlackBerry exec Neelam Sandhu, accused the company—and CEO John Giamatteo, specifically—of creating a hostile work environment and paying her less than her male colleagues for similar work. But as it turns out, U.S. Magistrate Judge Sallie Kim wasn’t buying it. In an 18-page ruling, the judge dismissed claims of gender wage discrimination and workplace harassment, stating that the plaintiff failed to provide evidence of “pervasive” or “severe” mistreatment, as required by law.

(Source: Investing.com) 

Naturally, BlackBerry wasted no time celebrating the ruling. In a statement, the company said, “We are pleased that the Court has permanently dismissed all claims against Mr. Giamatteo and all harassment and pay disparity claims against BlackBerry.” Additionally, this legal victory just so happened to spawn up a wave of nostalgia for investors as the stock made headlines for the first time since, well… Jay Baruchel played Mike Lazaridis and his atrocious head of hair in the 2023 film called… wait for it… BlackBerry. 

But, but, but,... with that said, it’s worth noting that the lawsuit isn’t entirely dead (yet). While some claims were dismissed “with prejudice” (meaning they can’t be refiled), others were dismissed “without prejudice,” giving Sandhu until August 19 to amend and refile. Among the remaining allegations are claims of wrongful termination and additional hostile work environment accusations under different statutes. So, while BlackBerry isn’t completely out of the legal woods yet, they’ve at least cleared some of the thorniest branches. 

Meaning, for a company that’s spent the last decade trying to escape its Remember When You Had a BlackBerry? legacy, this legal reprieve couldn’t come at a better time. BlackBerry’s pivot to cybersecurity and software hasn’t been without its challenges, and any sign of stability—like a judge siding against a potentially damaging lawsuit—is enough to get Wall Street excited.

Plus, in the high-stakes world of corporate America, nothing says “investor confidence” like a courtroom win. On the other hand though, the stock is still basically trash as it’s down -25% YTD. So yeah there’s that.

But hey, at least they’ve accepted to stay in their own lane through the years. Because, now with the legal case limping forward, BlackBerry’s focus remains on its cybersecurity and software business, which has become the company’s primary bread and butter after ditching smartphones for good.  

In the end though, while BlackBerry’s courtroom win is definitely an “only time will tell” situation—for now, the stock rally is giving us all a nice jolt of nostalgia. In the meantime, place your bets accordingly and as always, stay safe and stay frosty, friends! Until next time…

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Stocks.News does not hold positions in companies mentioned in the article.