NEW YORK, Jan. 24, 2003 (PRIMEZONE) -- Wechsler Harwood LLP has file a securities class action complaint in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Motorola, Inc. (``Motorola'' or the ``Company'') securities (NYSE:MOT) between February 3, 2000 and May 14, 2001, both dates inclusive (the ``Class Period''). Carl F. Koenemann, the Company's CFO during the Class Period, is the named defendant in the action.
A copy of the complaint filed in this action is available from the Court, or can be viewed on Wechsler Harwood web site at: www.whesq.com
The Complaint alleges that defendant violated Section 10(b) of the Securities Exchange Act of 1934 and breached his fiduciary duty to the Class by issuing a series of materially false and misleading statements about the Company's financial results. In particular, it is alleged that Motorola's vendor financing commitments were never properly disclosed, including over $1.7 billion in vendor financing to a single customer in Turkey. The Complaint alleges that as a result of these false and misleading statements the price of Motorola common stock was artificially inflated throughout the Class Period causing plaintiff and the other members of the Class to suffer damages.
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.
If you purchased or otherwise acquired Motorola securities during the Class Period described above, you may, no later than March 1, 2003, move the Court to serve as lead plaintiff. If you are a member of this class, you may join this class action by contacting Wechsler Harwood. Any member of the purported class may move the Court to serve as lead plaintiff through Wechsler Harwood or other counsel of their choice.
If you purchased Motorola securities during the Class Period, you may, no later than March 1, 2003, move to be appointed as a lead plaintiff in this class action. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.