NEW YORK, Feb. 10, 2003 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action in the United States District Court for the Northern District of Illinois, case number 03 C 0913, against Motorola, Inc. ("Motorola" or the "Company") (NYSE:MOT) and three of the Company's top officers on behalf of investors who purchased the common stock of Motorola during the period between February 3, 2000 and May 14, 2001, inclusive (the "Class Period").
The Complaint alleges that Motorola, a global telecommunications business, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing false and misleading statements concerning the Company's business, revenues and earnings which served to artificially inflate the price of Motorola's common stock. In particular, defendants made numerous false statements about transactions between Motorola and Telsim Mobil Telekomunikasyon Hizmetleri A.S. ("Telsim"), a Turkish cellular phone system operator controlled by Turkish citizen Kemal Uzan, his sons, and various members of his immediate family.
On February 3, 2000, Motorola issued a press release announcing that it had entered into a three year agreement to provide products and services to Telsim with potential revenue of $1.5 billion. However, Motorola failed to disclose that the deal with Telsim required Motorola (through Motorola Credit Corp.) to provide Telsim with $1.7 billion in vendor financing. On March 29, 2001, Motorola filed its Annual Proxy Statement with the Securities and Exchange Commission in which Motorola only partially disclosed the magnitude of its vendor financing commitments and failed to disclose the precarious nature of those loans. On April 6, 2001, following the publication of an analysis of Motorola's vendor financing deals, shares of Motorola stock dropped twenty-three percent. Six weeks later, Motorola's revealed that $728 million of the Telsim loan was past due and that Motorola actually had loaned Telsim $2 billion in vendor financing -- $300 million more than previously disclosed.
If you purchased the common stock of Motorola during the Class Period, you have until March 3, 2003 to ask the Court to appoint you as lead plaintiff for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, or if you would like to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.