Lawsuits & Judgments

On the 10^th of August, attorneys at The Brualdi Law Firm of New York, NY filed a class action lawsuit against Motorola, the Illinois based wireless communications company. The following day, the firm of Lerach Coughlin Stoia Geller Rudman & Robbins of San Diego, CA initiated a similar lawsuit. Both actions were filed in the Federal Court for the Northern District of Illinois.

These shareholder lawsuits allege that Motorola executives made misleading statements in order to artificially inflate the company’s stock price during the period from July 2006 through January 2007. OF course, the stock prices eventually fell and the shareholders are alleged to have suffered greatly.

An article on CNN Money sites the specifics:

In order to artificially inflate the price of Motorola stock, defendants began a series of false and misleading statements regarding the Company’s business and prospects. Specifically, defendants repeatedly told investors to expect strong growth in sales and revenues. On October 17, 2006, defendants announced that Motorola had failed to meet its revenue and sales projections. As a result of this announcement, Motorola’s stock price declined over 7% in two trading days. Then on January 4, 2007, defendants announced that Motorola’s fourth quarter 2006 results also failed to meet expectations. This time, the Company’s stock price declined almost 8%.

In order to be considered an eligible member of “the class” for these suits, you had to have purchased Motorola shares during the July2006 to January 2007 period cited above.

If you think you might be eligible to join the class for either case, you can find the firms at the links below:

http://www.lerachlaw.com

http://www.brualdilawfirm.com/