NEW YORK-A law firm, Stull, Stull and Brody, said it filed a class-action lawsuit against wireless vendor Motorola for misleading its common stock purchasers between February 2000 and 14 May, 2001.
The lawsuit, which was filed at the U.S. District for the Southern District of New York, involves Motorola’s transactions with Turkish mobile operator Telsim Mobil Telecom.
“Motorola failed to disclose that the deal with Telsim required Motorola to provide Telsim with US$1.7 billion in vendor financing, and that this loan represented a huge risk to Motorola shareholders if Telsim defaulted,” the law firm said in a press release.
The law firm said Motorola also lent US$2.9 billion in vendor financing to other customers.
