| |
|
 |
| |
|
|
|
 |
|
|
U.S. Court of Appeals Affirms U.S. District
Court Judgment against Uzans
SCHAUMBURG,
IL, 25 October 2004 – Motorola, Inc. (NYSE: MOT) today announced that on
October 22, 2004, the United States Court of Appeals for the Second Circuit
("the Appeals Court") affirmed the July 31, 2003 judgment for $2.13 billion
rendered in favor of Motorola Credit Corporation and against the Uzan family of
Turkey and their confederates (“the defendants”) for perpetrating a
massive fraud against Motorola.
As previously
announced, in the July 31, 2003 judgment rendered by Judge Rakoff of the United
States District Court for the Southern District of New York ("the District
Court"), the District Court found that the Uzans and their confederates had
perpetrated a "massive fraud" against Motorola in connection with loans made by
Motorola to Telsim, the second largest telecommunications company in Turkey that
was owned by the Uzans. The District Court had found, among other things,
that the Uzans fraudulently induced Motorola to make the loans to Telsim, stole
the collateral given to Motorola to secure the loan (stock in Telsim), filed
false criminal charges against Motorola executives and stole at least $1 billion
from Telsim for personal use.
In a 42-page
opinion, the Appeals Court explicitly dismissed the claims of the defendants
that the District Court lacked jurisdiction, stating: "we reject each of
defendants' challenges to the District Court's jurisdiction over this
action." The Appeals Court further stated that the District Court had made
"extensive findings . . . laid out in its meticulous 173-page opinion" and that
the defendants on appeal "do not challenge the District Court's findings of
fact, nor do they contest the legal conclusions regarding the substantive issues
of liability that follow from those findings."
In addition, the Appeals Court upheld the
District Court’s ruling which ordered that the Uzans be arrested and
imprisoned if found within 100 miles of New York until such time as the Uzans
purge their prior contempts of court, including, their defiance of a court order
requiring them to deposit the stolen Telsim stock into the court’s
registry (for the benefit of Motorola and co-plaintiff Nokia Corporation), among
many other refusals to comply with the District Court’s
orders.
"We are extremely gratified with the
decision from the Appeals Court," said Peter
Lawson, executive vice president, general counsel and
secretary of Motorola. "From the outset of this case, the Uzans have raised one
specious argument after another to divert attention from their massive
fraud. After extensive briefing and argument, the Appeals Court has now
clearly rejected the challenges of the Uzans. We look forward to
continuing our efforts to execute on the assets of the Uzans worldwide,
including the Uzan’s jet aircraft, prestigious London apartments and
luxury apartments in midtown Manhattan in New York
City."
Motorola noted that, as to the
Uzan’s New York City apartments, the New York City Sheriff has scheduled
an execution sale for November 10, 2004.
The
Company also noted that the Appeals Court remanded three issues to the District
Court for additional findings and analysis. The issues are: 1. Whether the
District Court correctly imposed a constructive trust over the stolen shares in
favor of Motorola (the constructive trust was affirmed as to Nokia), 2. Whether
Motorola may collect its judgment against non-party companies owned and
controlled by the Uzans, and 3. The amount of punitive damages the District
Court may impose against defendants in favor of Motorola. As previously
announced, the District Court imposed $2.13 billion in punitive damages against
the Uzans for perpetrating their massive fraud against Motorola. The Appeals
Court held "although we agree with the District Court that, on this record, some
punitive damages award is appropriate, we direct the District Court to
reconsider the size of that award on
remand."
About
Motorola
Motorola, Inc. (NYSE: MOT) is a global
leader in wireless, broadband and automotive communications technologies that
help make life smarter, safer, simpler, synchronized and fun. Sales in 2003
were US$27.1 billion. Motorola creates innovative technological solutions that
benefit people at home, at work and on the move. The company also is a
progressive corporate citizen dedicated to operating ethically, protecting the
environment and supporting the communities in which it does business. For more
information: www.motorola.com.
#
# #
Media Contact:
Jennifer Weyrauch
+1-847-435-5320
Jennifer.weyrauch@motorola.com
|
|
|
|
|
|
