Motorola Faces Shareholder Class Action Suit

by Darren

It’s not uncommon for companies to get sued over possible shareholder grievances these days. Now Motorola can join the gang. Schiffrin Barroway Topaz & Kessler, LLP have filed the suit in the United States District Court for the Northern District of Illinois on behalf of all purchasers of securities of Motorola, Inc. on record from July 19, 2006 through January 4, 2007.

The Complaint charges Motorola and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Motorola builds, markets and sells products, services and applications that make connections to people, information and entertainment through broadband, embedded systems and wireless networks. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company was suffering from poor product and geographic mix in the Mobile Services segment; (2) that the Company was suffering from reduced margins and pricing pressures as a result of shifting consumer demand and purchases; (3) that the Company was unable to adequately offer 3G products when consumer demand increased as the Company was not acquiring the necessary chipsets from its suppliers; (4) that the Company’s performance in Europe was suffering as a result of its limited 3G product portfolio; (5) that the Company’s products were not meeting internal expectations or sales targets; and (6) that, as a result of the foregoing, the Company’s statements about its financial well- being and future business prospects were lacking in a reasonable basis when made.

Such shareholder suits are generally costly for the company. If you want to participate, you can visit the law firm website for more information.