In re Motorola Securities Litigation
This is a securities fraud class action that was pending in the United States District Court for the Northern District of Illinois before Judge Rebecca R. Pallmeyer. The Focal Point’s client represented the Class, which included all persons who purchased Motorola common stock and five classes of registered Motorola debt securities during the period February 3, 2000, through May 14, 2001. The case concerned alleged false statements, accounting misrepresentations, and omissions by the Defendants, Motorola, Inc., and three of Motorola’s former executive officers, Christopher Galvin (CEO), Robert Growney (COO) and Carl Koenemann (CFO). Motorola had misrepresented its loans to Telsim, a start-up mobile telecommunications concern in Turkey. Ultimately, Telsim defaulted on the loans and Motorola sued the Uzans (the Turkish family that owned and controlled Telsim) in the Southern District of New York. As a result of the facts revealed by Motorola in that action, it became apparent that Motorola’s accounting and lack of disclosure concerning the loans to Telsim constituted a separate fraud on Motorola’s public investors, including the New Jersey state pension fund.
The Focal Point’s Role
The Focal Point worked with counsel and their experts to simplify and explain a complex and confusing story. In particular, counsel needed to demonstrate how Motorola’s stock price was artificially inflated by a failure to disclose financing to Telsim. The Focal Point conducted Mental Mining® sessions, developed graphics, and in the weeks leading up to trial, provided on-site “war room” support to assist counsel and experts as they prepared their case.
Motorola agreed to pay a $190 million settlement to the Class right before trial.
US District Court for the Northern District of Illinois
The Focal Point’s Clients
Robinson, Curley & Clayton. P.C.
Lite DePalma Greenberg & Rivas, LLC