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RIM Faces Class-Action Lawsuits over Outages

Nothing is going right for RIM at the moment. Recently, RIM deferred its PlayBook software update and now it is reported that RIM is to face class-action litigations following three-day service outage that left millions of Blackberry customers without email, messaging and/or ability to browse.

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According to Reuters, the outage affected Blackberry customers across the five continents. The outage annoyed many of RIM customers who could not keep them from filing class-action litigation against RIM at a Federal Court in Santa Ana in California. The litigation is filed on behalf of all US Blackberry Handset owners with an active service agreement at the time of crash in service.

The basis of lawsuit against RIM is led on violation of contract, laxity and unreasonable fortification as well as the recent compensatory offer by RIM offering free premium apps worth up to $100 and a free technical support for a whole month.


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The similar sort of class-action litigations are also filed at the Quebec Superior Court, by Canadian Blackberry users with an active service agreement.

Reuters concludes its report as:

The U.S. complaint estimates that Research in Motion earns at least $3.4 million per day in service revenue, collected from customers through carrier networks including Sprint and Verizon. “Plaintiff and the Class ultimately paid these fees,” it said.

The size of the potential class of U.S. consumers would include 2.4 million California residents alone, the lawsuit said.

Although, RIM tried to play it cards smartly by offering free apps and support, it failed to convince masses. The registered lawsuits prominently pointed out this step by RIM claiming that “RIM must take full responsibility for these damages.”

However, there are some major aspects that should be taken into consideration while dealing with filed lawsuits. The most important is to see whether Blackberry customers bears an ‘implied contract’ with RIM or they have actually paid for services which they haven’t received between October 10th and October 14th. In any unfortunate situation, RIM would be a great sufferer.

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