Smartphone manufacturer Blackberry's motion was granted by U.S. District Judge Richard Sullivan to dismiss a shareholder lawsuit that was accusing the company of seeking fraudulent obscurity of its falling market position.

The court ruling found that the plaintiffs had no adequate allegation that Blackberry had created material misstatements.

In a released statement, Judge Sullivan said that the failure of the smartphone manufacturer to compete with rivals alone does not imply securities fraud claim.

In 2011, investor Robert Shemian filed the lawsuit in a bid to recover losses on behalf of U.S. shareholders who acquired the firm's stock from December 2010 to June 2011.

Known as Research in Motion until recently, Blackberry has been hopping its new Z10 smartphones would help it achieve a turnaround after years of losing market share as Google's Android and Apple's iPhone dominate the market.