Investigation Overview
A Motorola investor filed a lawsuit on behalf of those who purchased Motorola, Inc. (NYSE:MOT) common stock during the period beginning December 6, 2007 through January 22, 2008. Meanwhile an investigation on behalf of current long term investors in Motorola, Inc. (NYSE:MOT) concerning breaches of fiduciary duty related to the historical and potential compensation that was awarded certain senior officers was announced.
Motorola, Inc., located in Schaumburg, Illinois, is engaged in providing technologies, products and services for mobile phones. According to the complaint filed in the U.S. District Court for the Northern District of Illinois on behalf of those who purchased Motorola, nc. (NYSE:MOT) common stock during the period beginning December 6, 2007 through January 22, 2008, the plaintiff alleges that Motorola, Inc. (NYSE: MOT) and certain of its current and former officers and directors violated the Securities Exchange Act of 1934 by intentionally and knowingly misstating between December 6, 2007 through January 22, 2008 Motorola's 4Q 07 earnings projections and sales demand for its newly-released RAZR2 mobile handset during the 2007 holiday shopping season.
According to the investigation by a law firm the investigation on behalf of current long term investors in Motorola stock focuses on possible claims that certain of Motorolas senior officers were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation in past years.
Motorolas Total Revenue declined from $36.622billion in 2007, to $30.146billion in 2008, and $22.044billion in 2009.
Certain senior officers at Motorola, were awarded salaries, bonuses, stock options and other forms of long-term, incentive or retirement compensation that was, so the investigation, excessive or unwarranted based on the Motorolas performance as compared to what senior officers at comparable companies were making and/or results that were fraudulent, misleading or not long-lasting. The investigation by the law firm is also investigating claims that the prior compensation awarded at Motorola is now clearly improper based upon its current operating condition. Finally the investigation focuses also on possible claims that would allow Motorola (MOT) stockholders to influence or control future compensation decisions at Motorola. Shares of Motorola, Inc. (MOT) traded recently at $6.70 per share, down from its 52weekHigh of $9.45 per share, $15.07 per share on January 04, 2009, almost $20 per share during 2007, and over $26 per share in 2006.