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Scott+Scott LLP Announces Class Action Lawsuit Against Motorola, Inc. and Others on Behalf of Investors -- MOT(January 21, 2010)
NEW YORK, Jan. 21, 2010 (GLOBE NEWSWIRE) -- On January 21, 2010, Scott+Scott LLP filed a class action complaint against Motorola, Inc. ("Motorola" or the "Company'') (NYSE:MOT) and certain of the Company's officers in the U.S. District Court for the Northern District of Illinois. The action for violations of the Securities Exchange Act of 1934 is brought on behalf of those purchasing Motorola common stock during the period beginning December 6, 2007 through January 22, 2008, inclusive (the "Class Period'').
If you purchased Motorola common stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than March 22, 2010. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott ([email protected] (800) 404-7770; (860) 537-5537 or visit the Scott+Scott website, http://www.scott-scott.com) for more information. There is no cost or fee to you.
Motorola is the largest U.S. maker of mobile phones. The Company's securities are traded on the New York Stock Exchange, trading tens of millions of shares every day. The complaint against Motorola alleges that, during the Class Period, Motorola and several of its current and former officers and directors intentionally and knowingly misstated the Company's 4Q 07 earnings projections and sales demand for its newly-released RAZR2 mobile handset during the 2007 holiday shopping season.
During the Class Period, Motorola spokespersons made numerous positive statements about the Company's latest product offering, the RAZR2 handset, to analysts and investors. As it turns out, these statements were materially false and misleading because they failed to disclose the following adverse facts, among others: (i) RAZR2, which went on sale in the U.S. in August 2006, failed to attract buyers in the 2007 holiday season because it was not different enough from the original RAZR to warrant the $299 price tag; (ii) as a result, Motorola was losing significant market share to Apple, Inc.'s iPhone, Samsung Electronics. Co.'s Sync camera handset and Nokia Oyj's devices, among others; (iii) though the Company reported having "sold" 900,000 of the new RAZR2s between August 2007 and September 31, 2007, the Company was only on track to sell a total of 1.5 million RAZR2s between October 1, 2007 and December 31, 2007; and (iv) Motorola's senior executives knew the Company was not on track to achieve anywhere near the $0.12-$0.14 per share in profits Motorola's executives promised on December 6, 2007.
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, Motorola's senior executives expressly conceded that they knew demand for the RAZR2 was lackluster dating back as early as Thanksgiving 2007 - two weeks before the start of the Class Period. Defendants also downgraded their 1Q 08 earnings guidance. 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.
Scott+Scott has significant experience in prosecuting major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals and other entities worldwide.
CONTACT: Scott+Scott LLP
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