Fraud – Backpage Briefing – Motorola and Nokia’s lawsuit for fraud – Brief Article
At a time when multinationals are being blamed for global inequality and other ills, Motorola and Nokia have gone to court to claim they have been the victims of a $3 billion sting. The two rivals have filed suit claiming that the Uzan family, controlling shareholders of Turkish cellco Telsim, took out vendor loans with no intention of repaying.
In the suit, which includes four counts under the anti-racketeering law RICO, Motorola seeks more than $2 billion and Nokia more than $700 million in compensation and punitive damages as well as the restoration of their equity in the operator, which last year defaulted on vendor loans worth more than $3 billion. The complaint states that the “Uzans’ true intentions were exposed when they stole the collateral for Motorola’s and Nokia’s loans by intentionally and illegally diluting the value of stock pledged as collateral”.
Motorola general counsel Peter Lawson said the transactions were “a premeditated and unlawful attempt by the Uzans to rob both Motorola and Nokia of our assets”. A New York court froze the Uzan’s assets, including nine properties in Manhattan and $8 million in cash. Through their lawyer, the Uzans deny the charges.
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