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Motorola, Inc. Hit by Shareholder Lawsuit

 

If you purchased Motorola, Inc. (NYSE:MOT) common stock during the period beginning December 6, 2007 through January 22, 2008, you have certain options and there are strict and short deadlines running. Deadline: March 22, 2010. Those MOT investors and current long term MOT shareholders should contact the Shareholders Foundation.

You may contact us by using this form, or by sending an email to mail@shareholdersfoundation.com, or calling us at (858) 779-1554.

Company Name(s): 
Motorola
Case Name: 
Motorola Shareholder Class Action 01/21/2010
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: MOT
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/21/2010
Class Period Begin: 
12/06/2007
Class Period End: 
01/22/2008
Court of Filing: 
U.S. District Court for the Northern District of Illinois
Deadline To File for Lead: 
03/22/2010
Summary: 

An investor in Motorola, Inc. (NYSE:MOT) filed a lawsuit in the U.S. District Court for the Northern District of Illinois on behalf of those purchasing Motorola, Inc. (Public, NYSE:MOT) common stock during the period beginning December 6, 2007 through January 22, 2008, against Motorola, Inc and others over alleged violations of Federal Securities Laws in connection with problems Motorola was experiencing with its earnings projections and sales demand for the RAZR2 phone.

According to the complaint the plaintiff alleges that Motorola, Inc. (NYSE: MOT) and certain of its current and former officers and directors violated the Securities Exchange Act of 1934 by intentionally and knowingly misstating between December 6, 2007 through January 22, 2008 Motorola's 4Q 07 earnings projections and sales demand for its newly-released RAZR2 mobile handset during the 2007 holiday shopping season.

Then on January 22, 2008, Motorola issued a release reporting Motorola's 4Q 07 financial results, followed by an earnings conference held with the investment community later that day, during which this information was finally disclosed to investors. Significantly, so the lawsuit, Motorola's senior executives expressly conceded that they knew the demand for the RAZR2 was lackluster dating back as early as Thanksgiving 2007 - two weeks before December 6, 2007. Defendants also downgraded their 1Q 08 earnings guidance, so the complaint, and as the market reacted to these disclosures, Motorola shares plummeted 18.8%, or $2.31 per share, to close at $10.01 per share, its lowest level in five years, on unusually high volume.

Motorola, Inc., located in Schaumburg, Illinois, is engaged in providing technologies, products and services for mobile phones. The Company’s portfolio includes wireless handsets, wireless accessories, digital entertainment devices, wireless access systems, voice and data communications systems, and enterprise mobility products. The segments of the Company include Mobile Devices Segment, Home and Networks Mobility Segment and Enterprise Mobility Solutions Segment. Motorola, Inc. reported in 2007 Total Revenue of $36.622billion and in 2008 Total Revenue of $30.146billion. Shares of Motorola, Inc. (MOT) traded recently at $7.19 per share, down from its 52weekHigh of $9.45 per share, $15.07 per share on January 04, 2009, almost $20 per share during 2007, and over $26 per share in 2006.

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