Motorola Says Appeals Court Affirms Judgment Against Uzans

SCAHUMBURG, Ill. -(Dow Jones)- Motorola Inc. (MOT) said the U.S. Court of Appeals affirmed a potential $2.13 billion judgment in favor of Motorala Credit Corp. against the Uzan family of Turkey for fraud.

In a press release Monday, Motorola said a July 31, 2003 District Court ruling found that the Uzans had perpetrated fraud in connection with loans made by Motorola to Telsim, Turkey's second largest wireless operator.

Motorola said the District Court found that the Uzans, who own Telsim, fraudulently induced Motorola to make loans to Telsim, stole collateral given to Motorola to secure the loan, filed false criminal charges against Motorola executives and stole at least $1 billion from Telsim for personal use.

The Appeals Court also upheld a ruling which ordered the Uzans be arrested and imprisoned if found within 100 miles of New York until they purge their prior contempts of court.

Motorola said the Appeals Court remanded three issues for additional findings and analysis, including whether the District Court correctly imposed a constructive trust over stolen shares and whether Motorola can collect its judgment against non-party companies owned and controlled by the Uzans.

The court also remanded the amount of punitive damages, which was set at $2.13 billion. The Appeals Court said it agreed with the District Court that a punitive damages award is appropriate, but it directed the District Court to reconsider the size of the award."

Posted to the site on 25th October 2004