PHILADELPHIA, Jan. 15, 2002 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of Illinois, on behalf of all persons and entities who purchased the common stock of Motorola (NYSE:MOT) ("MOTOROLA" or the "Company"), between February 3, 2000 and April 6, 2001, inclusive (the "Class Period").
The action, numbered 03-CV-00287, is pending in the United States District Court, Northern District of Illinois, located at United States Courthouse, 219 S. Dearborn St., Chicago, Illinois 60604, against defendants MOTOROLA, INC., CHRISTOPHER B. GALVIN, CARL F. KOENEMANN, and ROBERT L. GROWNEY. The Honorable Pallmeyer is presiding over the case. A copy of the Complaint is available from the Court or the Law Offices Bernard M. Gross, P.C. Please contact us by phone at 866-561-3600 (toll free) or by E-mail at susang@bernardmgross.com.
The Complaint charges Motorola, Inc., Christopher B. Galvin, Chairman of the Board of Directors and Chief Executive Officer, Robert L. Growney, former President, Chief Operating Officer, and Carl F. Koenemann, former Executive Vice President-Finance and Chief Financial Officer and Director of Motorola with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5, by issuing a series of materially false and misleading statements to the market during the Class Period.
Specifically, as alleged in the Complaint, defendants issued a press release on February 3, 2000, stating that Motorola and Telsim signed a $1.5 Billion GSM deal. This press release was false and misleading because it failed to disclose that as part of the Telsim deal, Motorola had agreed to provide at least $1.5 billion in vendor financing. While vendor financing was a recognized practice in the industry and Motorola had previously disclosed that it often agreed to provide vendor financing, the February 3 press release did not disclose and defendants concealed for several months: the extent to which the Telsim transaction was being supported by vendor financing, the level of risk which Motorola was facing by providing such vendor financing; or that the vendor financing was secured primarily by a pledge of the stock of Telsim. This information was material to an investor in assessing the potential value of the Telsim deal to Motorola and to the level of risk being incurred by Motorola.
On March 30, 2001, Motorola filed its Proxy Statement on SEC Schedule 14A. The 2001 Proxy Statement stated for the first time that Motorola had provided over $1.5 billion of vendor financing in connection with the Telsim deal. Because the foregoing information regarding Telsim was buried deep within the 2001 Proxy Statement it took analysts some time to process the information. Disclosure of Motorola's material financing commitment to Telsim in light of shifting capital markets drove the market price of Motorola's common stock down sharply. Motorola's common stock fell from a closing price of $14.95 per share on April 5, 2001 to close at $11.50 per share on April 6 - a 23% drop in one day. Trading volume was extremely heavy at 64 million shares traded. By July 2001, Telsim eventually did default on the $2 billion loan from Motorola. The Company subsequently filed a lawsuit in the Southern District of New York against Telsim in January 2002.
Plaintiff seeks to recover damages on behalf of Class members and is represented by the law firm of Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you bought the securities of Motorola, Inc. between February 3, 2000 and May 14, 2001 you may, no later than March 3, 2003, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters,
PLEASE
CONTACT: Law Offices Bernard M. Gross, P.C.
Deborah R. Gross, Esquire
Susan R. Gross, Esquire
1515 Locust Street, Second Floor
Philadelphia, PA 19102
Telephone: 866-561-3600 (toll-free)
or 215-561-3600
E-mail: susang@bernardmgross.com or
debbie@bernardmgross.com.
Website: http://www.bernardmgross.com