SCHAUMBURG, Illinois, United States—In an unusual joint move, Motorola Credit and Nokia will file a lawsuit against the Uzan family, the Turkish billionaires who are controlling owners of Turkey’s major wireless operator Telsim Mobile.
The lawsuit alleges 13 counts of wrongdoing, including four counts of criminal activity in violation of the Racketeer Influence and Corrupt Organizations Act (RICO). The RICO counts allege that the Uzan family entered loan arrangements with the intention of defrauding Motorola and Nokia. According to the complaint, the US$3 billion Motorola and Nokia loaned to the Uzan family for the purchase of base stations, switching equipment, telephones and other GSM and 2.5-generation (2.5G) wireless network technology was used for other purposes with no intention of repayment.
Motorola said it is seeking more than US$2 billion in compensatory damages, and Nokia is seeking more than US$700 million. Both companies are also seeking punitive damages and treble damages under the RICO counts, in addition to asking the courts to restore the collateral for the loans.
“We are taking the unusual step of jointly filing this action because it is clear to both companies that the Uzans had no intention of dealing in good faith with us in an effort to resolve this situation,” said Peter Lawson, Motorola’s general counsel. “This action is in recognition that this is not a normal commercial dispute between private parties—it is, rather, a premeditated and unlawful attempt by the Uzans to rob both Motorola and Nokia of our assets.”
Telsim denied the fraud charges and said it will countersue for compensation.
