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Welcome to the Motorola Securities Settlement Website A Proposed Settlement of $190,000,000 is pending. If you purchased certain Motorola, Inc. (“Motorola”) securities between February 3, 2000 and May 14, 2001, inclusive, then you could get a payment from a class action settlement.
Statement of Plaintiff Recovery Pursuant to the settlement described herein, the Defendants have made a payment into an account established for the benefit of the Class, in the amount of One Hundred Ninety Million ($190,000,000) in cash (the “Settlement Amount”). The Settlement Amount has been invested in interest-bearing U.S. government securities since May 14, 2007 and that interest is estimated to total approximately $3.2 million, as of the September 7, 2007 date of the Settlement Fairness Hearing. The Settlement Amount plus interest, in whatever amount it ultimately accrues, will be available for the benefit of the Class. Your recovery will depend on the number of Motorola Securities you purchased during the Class Period and the timing of those purchases and any sales during the Class Period. Under the federal securities laws, the Class’ recovery in this Action is limited by the amount of the decline in Motorola Securities prices caused by disclosure of information relating to Telsim. During the Class Period, Motorola Securities declined in value for a number of reasons, only a part of which was caused by disclosure of information relating to Telsim. Lead Plaintiff estimates that approximately 1.5 billion Motorola common shares were available to trade during the Class Period, and that assuming that (i) each of those shares was traded during the Class Period, (ii) all the holders of those shares file claims in this class action, and (iii) each of those shares has a Recognized Loss under the Plan of Allocation, that the average recovery per each of those 1.5 billion Motorola shares will be approximately $0.12 before deduction of court-approved fees and expenses and other payments.2 The actual amount you recover will depend on the amount of your Recognized Loss and the ratio of your Recognized Loss to that of the total Recognized Losses of all Class Members who file valid Proof of Claim forms. For example, if 100% of Class Members file valid claims, the average recovery per share would be $0.12 before deduction of court-approved fees and expenses and other payments. If 50% of the Class Members file valid claims, the average recovery would be $0.24 per share before deduction of court-approved fees and expenses and other payments. Class Members who purchased any of the five classes of Motorola bonds included in the Class during the Class Period, may also receive a payment from the Net Settlement Fund, but the available records concerning those bond securities do not permit a precise estimate to be provided concerning the number of affected bond securities or the recovery on those debt security transactions. The amounts of either your Recognized Loss or your recovery from the Net Settlement Fund are not the same as your market losses from trading in Motorola Securities during the Class Period. The recovery received by Class Members in this case is a portion of the claimed damages suffered by Class Members as a result of Motorola’s alleged false statements and omissions concerning Telsim, one of its customers. A Class Member’s recovery will largely depend on the number of claims submitted, when during the Class Period a Class Member purchased shares of Motorola common stock or purchased Motorola Bonds, the purchase price paid, and whether those Motorola Securities were held at the end of the Class Period or sold during the Class Period, and, if sold, when they were sold and the amount received. An individual Class Member will receive a proportionate amount of their Recognized Loss, compared to the Recognized Loss of all other Class Members who file valid claims. Click on the link for the Plan of Allocation for more information on your Recognized Loss. Statement of Potential Outcome of Case The parties disagree on both liability and damages and do not agree on the average amount of damages per share that would be recoverable if Lead Plaintiff were to have prevailed on each claim alleged. Lead Plaintiff, the State of New Jersey, Department of Treasury, Division of Investment, estimated that if it were able to prove liability and the fact finder found most favorably for Lead Plaintiff and the Class, the potential damage award could range from $0.83 per share of common stock to no more than $4.12 per share. Defendants deny that they are liable to the Lead Plaintiff or the Class, and deny that Lead Plaintiff or the Class have suffered any damages. Statement of Attorneys’ Fees and Costs Sought The lawyers selected by the Lead Plaintiff (“Lead Counsel”) are asking the Court to award attorneys’ fees equal to approximately fifteen percent (15%) of the value of the Settlement, and for reimbursement of expenses incurred in connection with the prosecution of this Action in an amount not to exceed $2.2 million. The requested fee award is based on a formula that was negotiated with Lead Counsel at the outset of the litigation by the Lead Plaintiff, a sophisticated investor and litigant, and that was also disclosed to the Court at the outset of the litigation. The requested fees and expenses would amount to an average of 2¢ per damaged share. Application will also be made for reimbursement to the Lead Plaintiff for an amount not to exceed $40,000 for reimbursement of its reasonable costs and expenses (including lost wages) directly relating to its representation of the Class, including participation in and supervision of the litigation and settlement negotiations. Application will be made for an award of $1,000 each, totaling $6,000, to the six Class Members who agreed to testify at trial on behalf of the Class (the “Class Witnesses”) and who prepared for trial and were deposed by Defendants in connection with their anticipated trial testimony. Further Information Further information regarding the Action and the Notice may be obtained by contacting Lead Counsel: Robert C. Finkel, James A. Harrod, Wolf Popper LLP, 845 Third Avenue, New York, NY 10022, Telephone (212) 759-4600, or Allyn Z. Lite, Bruce D. Greenberg, Lite DePalma Greenberg & Rivas, LLC, Two Gateway Center, Newark, NJ 07102, Telephone (973) 623-3000, or the Claims Administrator, Complete Claim Solutions, LLC, Post Office Box 308, Minneapolis, MN 55440, Telephone (888) 952-9099 toll-free or (612) 359-2974. Reasons for the Settlement The principal reason for the settlement is the benefit to be provided to the Class now. This benefit must be compared to the risk that no recovery might be achieved after a contested trial and likely appeals, possibly years into the future. For Defendants, who deny all allegations of wrongdoing or liability whatsoever, the principal reason for the settlement is to eliminate the expense, risks, and uncertain outcome of the litigation.
1 Capitalized terms that are not defined herein may be defined in the Stipulation of Settlement, Plan of Allocation or other documents relating to the Settlement. If you have any questions about the definition of a capitalized term, you may contact the lawyers or the Claims Administrator as described in the Further Information section below. 2 This estimate of per share recovery assumes that approximately 5% of the proceeds from the settlement will be allocated to Motorola Registered Bond purchasers. An allegedly damaged share might have been traded more than once during the Class Period, and the indicated average recovery would be the total for all purchasers of that share. |
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