MOT » Topics » Iridium India Lawsuits

These excerpts taken from the MOT 10-K filed Feb 28, 2008.
Iridium India Lawsuits
 
Motorola and certain of its current and former officers and directors were named as defendants in a private criminal complaint filed by Iridium India Telecom Ltd. (“Iridium India”) in October 2001 in the Court of the Extra Judicial Magistrate, First Class, Khadki, Pune, India. The Iridium India Telecom Ltd. v. Motorola, Inc. et al. complaint alleges that the defendants conspired to, and did, commit the criminal offense of “cheating” by fraudulently inducing Iridium India to purchase gateway equipment from Motorola, to acquire Iridium stock, and to invest in developing a market for Iridium services in India. Under the Indian penal code, “cheating” is punishable by imprisonment for up to 7 years and a fine of any amount. The court may also require defendants to compensate the victim for its losses, which the complaint estimates at about $100 million. In August 2003, the Bombay High Court granted Motorola’s petition to dismiss the criminal action against Motorola and the individual defendants. Iridium India has petitioned the Indian Supreme Court to exercise its discretion to review that dismissal, and that petition is pending.
 
In September 2002, Iridium India also filed a civil suit in the Bombay High Court against Motorola and Iridium. The suit alleges fraud, intentional misrepresentation and negligent misrepresentation by Motorola and Iridium in inducing Iridium India to purchase gateway equipment from Motorola, to acquire Iridium stock, and to invest in developing a market for Iridium services in India. Iridium India claims in excess of $200 million in damages and interest. Following extensive proceedings in the trial court and on appeal related to Iridium India’s motion for interim relief, Motorola has deposited approximately $44 million in a specially designated account in India, and the Indian Supreme Court has accepted for a full hearing at a later date Motorola’s appeal regarding interim relief.
 
Iridium
India Lawsuits



 



Motorola and certain of its current and former officers and
directors were named as defendants in a private criminal
complaint filed by Iridium India Telecom Ltd. (“Iridium
India”) in October 2001 in the Court of the Extra Judicial
Magistrate, First Class, Khadki, Pune, India. The Iridium
India Telecom Ltd. v. Motorola, Inc. et al.
complaint
alleges that the defendants conspired to, and did, commit the
criminal offense of “cheating” by fraudulently
inducing Iridium India to purchase gateway equipment from
Motorola, to acquire Iridium stock, and to invest in developing
a market for Iridium services in India. Under the Indian penal
code, “cheating” is punishable by imprisonment for up
to 7 years and a fine of any amount. The court may also
require defendants to compensate the victim for its losses,
which the complaint estimates at about $100 million. In
August 2003, the Bombay High Court granted Motorola’s
petition to dismiss the criminal action against Motorola and the
individual defendants. Iridium India has petitioned the Indian
Supreme Court to exercise its discretion to review that
dismissal, and that petition is pending.


 



In September 2002, Iridium India also filed a civil suit in the
Bombay High Court against Motorola and Iridium. The suit alleges
fraud, intentional misrepresentation and negligent
misrepresentation by Motorola and Iridium in inducing Iridium
India to purchase gateway equipment from Motorola, to acquire
Iridium stock, and to invest in developing a market for Iridium
services in India. Iridium India claims in excess of
$200 million in damages and interest. Following extensive
proceedings in the trial court and on appeal related to Iridium
India’s motion for interim relief, Motorola has deposited
approximately $44 million in a specially designated account
in India, and the Indian Supreme Court has accepted for a full
hearing at a later date Motorola’s appeal regarding interim
relief.


 




EXCERPTS ON THIS PAGE:

10-K (2 sections)
Feb 28, 2008
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