Motorola settles class action suit for $200 million
Suburban-based Motorola is settling a years-long securities fraud lawsuit brought by company shareholders.
Motorola Solutions has agreed to pay $200 million to settle a class action lawsuit investors brought against the company in August 2007. The lawfirm Robbins Geller Rudman & Dowd, which represents Motorola shareholders in the suit, announced via its webiste Friday that a settlement had been reached with the electronics company earlier in the week.
According to documents filed with the federal district court in Chicago, shareholders allege Motorola artificially inflated it's stock prices by falsely telling investors to expect revenue increases in the second half of 2006.
The documents say when those revenues didn't come in, stock prices fell sharply and investors lost money.
"As a result of the plaintiff's efforts, they have a very, very significant settlement that will turn a meaningful amount of money back to investors," said Samuel Rudman, an attorney representing the shareholders.
A spokesperson for Motorola would not comment on accusations of any wrongdoing, but said the company is glad to have the suit behind it.
The settlement still needs to be approved by a federal judge.