Motorola, Inc. Summary: According to a press release dated January 22, 2010, the complaint charges Motorola and certain of its officers and directors with violations of the federal securities laws for intentionally and knowingly misstating the 2007 fourth quarter earnings projections and sales demands for the RAZR2 during the 2007 holiday shopping season. Despite that fact that the RAZR2 was not attracting buyers in 2007 because it had not improved enough from the RAZR to earn the $299 price tag, numerous positive statements were made by Defendants. Motorola was losing significant market share to competitors for similar mobile handhelds. The Company reported 900,000 RAZR2s sold between August 2007 and September 31, 2007, on track to sell a total of 1.5 million RAZR2s between October 1, 2007 and December 31, 2007. With this information, the senior executives knew that the Company was not on track to hit the $0.12-$0.14 profits that they had promised on December 6, 2007.
On April 5, 2010, the Plaintiff's motion to appoint St.Lucie County Fire District Firefighters' Pension Trust Fund as lead plaintiff and to appoint the law firm of Scott and Scott as lead counsel with Freed and Weiss as liaison counsel was granted. On June 11, 2010, the lead plaintiff filed an Amended Complaint, widening the class period and adding certain individuals of the company as named defendants. On August 13, 2010, the defendants filed a motion to dismiss the Amended Complaint.
Before any ruling on that motion, on December 3, 2010, the lead plaintiff filed a Second Amended Complaint. The defendants responded by filing a motion to dismiss on December 17, 2010, and on February 28, 2011, the Honorable Virginia M. Kendall signed the Order granting the defendants' motion to dismiss the complaint. The case is now dismissed with prejudice.
On March 25, 2011, the plaintiffs filed a Notice of Appeal. The case was later remanded to the district court for the limited purpose of conducting class action settlement approval proceedings.
On June 17, 2011, a Motion for Preliminary Approval of Class Action Settlement was filed. According to the Settlement Agreement, the proposed settlement is in the amount of $3,150,000. The settlement was preliminarily approved on July 7, 2011. The Final Approval Hearing was set for November 2, 2011. That day, the Honorable Virginia M. Kendall granted the plaintiff's motion for final approval of the proposed settlement, class certification, and the plan of distribution. The action is now dismissed with prejudice.
SIC Code: 3663
Industry: Communications Equipment
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