updated 12:45 am EST, Tue December 13, 2011
HTC says Citi damaged its share
HTC on Tuesday was confirmed to have sued Citi Global Markets for allegedly misrepresenting the company's already dim outlook. Deputy chief prosecutor Huang Mou-hsin told Reuters that the smartphone designer had quietly sued in August for allegedly breaking a stock transaction law after HTC's share price collapsed. Its price has been cut to a third of its April value, down to the equivalent of just over $13.
Details of the lawsuit's progress weren't given by the prosecutor. Citigroup also hasn't commented on the details.
Although submitted in August, before it lowered its fall forecast again, the publicity surrounding the lawsuit may be an attempt to counter the negative tone regarding its recent performance. Despite being second only to Samsung in the Android world, HTC is now expected to lose market share both through Samsung as well as Apple's iPhone 4S, deflating notions that Android would let the top smartphone makers outside of Apple grow indefinitely.
The company still faces an uncertain future. While it may be working on high-end smartphones for early 2012, it also faces a final ITC decision that could see a number of its smartphones banned in the US for allegedly violating Apple patents. It has been a late bloomer in tablets and may not see its first real shot at the market until its third tablet, the quad-core Quattro, shows in late February.