Motorola 2008 Annual Report Download - page 40

In re Adelphia Communications Corp. Securities and Derivative Litigation
On December 22, 2003, Motorola was named as a defendant in two cases relating to the In re Adelphia
Communications Corp. Securities and Derivative Litigation (the “Adelphia MDL”). The Adelphia MDL consists of
at least fourteen individual cases and one purported class action that were filed in or have been transferred to the
United States District Court for the Southern District of New York. First, Motorola was named as a defendant in
the Second Amended Complaint in the individual case of W.R. Huff Asset Management Co. L.L.C. v. Deloitte &
Touche LLP, et al. (the “Huff Complaint”). This case was originally filed by W.R. Huff Asset Management Co.
L.L.C. on June 7, 2002, in the United States District Court for the Western District of New York and was
subsequently transferred to the Southern District of New York as related to the Adelphia MDL. Motorola and
several other individual and corporate defendants are named in the amended complaint.
As to Motorola, the complaint alleges a claim arising under Section 10(b) of the Securities Exchange Act of
1934 and Rule 10b-5 promulgated thereunder relating to Adelphia securities, and seeks recovery of the
consideration paid by plaintiff for Adelphia debt securities, compensatory damages, costs and expenses of litigation
and other relief. Motorola filed a motion to dismiss this complaint on March 8, 2004, which was granted on
January 29, 2009. Plaintiff’s motion to file an amended complaint is pending at this time.
Also on December 22, 2003, Motorola was named as a defendant in Stocke v. John J. Rigas, et al. This case
was originally filed in Pennsylvania and was subsequently transferred to the Southern District of New York as
related to the Adelphia MDL. Motorola and several other individual and corporate defendants are named in the
amended complaint. As to Motorola, the complaint generally makes the same allegations as the Huff Complaint
and a state law claim of aiding and abetting fraud relating to Adelphia securities. The complaint seeks return of
the consideration paid by plaintiff for Adelphia securities, punitive damages and other relief. Motorola filed a
motion to dismiss this complaint on April 12, 2004. In March 2008, the Stocke plaintiff agreed to become a
member of the purported class in Argent and the Stocke action was dismissed by the court as a stand-alone action.
On July 23, 2004, Motorola was named as a defendant in Argent Classic Convertible Arbitrage Fund L.P., et
al. v. Scientific-Atlanta, Inc., et al. (the “Argent Complaint”). The Argent Complaint was filed against Scientific
Atlanta and Motorola in the Southern District of New York. The Argent Complaint generally makes the same
allegations as the other previously-disclosed cases relating to the In re Adelphia Communications Corp. Securities
and Derivative Litigation that have been transferred to the Southern District of New York. The complaint seeks
compensatory damages and other relief. Motorola filed a motion to dismiss the Argent Complaint on October 12,
2004, which is awaiting decision.
On September 14, 2004, a complaint filed in state court in Los Angeles, California, named Motorola,
Scientific-Atlanta and certain officers of Scientific-Atlanta as defendants, Los Angeles County Employees
Retirement Association et al. v. Motorola, Inc., et al. The complaint raises claims under California law for aiding
and abetting fraud and conspiracy to defraud and generally makes the same allegations as the other previously
disclosed cases relating to the In re Adelphia Communications Corp. Securities and Derivative Litigation that have
been transferred to the Southern District of New York. There are no new substantive allegations. The complaint
seeks compensatory damages, opportunity-cost damages, punitive and other exemplary damages and other relief.
In late 2004, the Multi-District Litigation Panel transferred the case to federal court in New York, which transfer
is now final. Motorola filed a motion to dismiss the complaint in this action on September 19, 2005, which is
awaiting decision.
On October 25, 2004, Motorola was named in a complaint filed in state court in Fulton County, Georgia,
naming Motorola and Scientific-Atlanta and certain officers of Scientific-Atlanta, AIG DKR SoundShore Holdings,
Ltd., et al. v. Scientific-Atlanta Inc., et al. The complaint raises claims under Georgia law of conspiracy to defraud
and generally makes the same allegations as the other previously disclosed cases relating to the In re Adelphia
Communications Corp. Securities and Derivative Litigation that have already been filed and transferred to the
Southern District of New York. The complaint seeks damages and statutory compensation, punitive damages and
other relief. On April 18, 2005, the Multi-District Litigation Panel issued a final order transferring the case to
New York and that transfer is final. Motorola filed a motion to dismiss the complaint in this action on
September 19, 2005, which is awaiting decision.
Adelphia Communications Corp.—Bankruptcy Court Lawsuit
On June 23, 2006, Adelphia, on behalf of the estate and the various classes of Adelphia creditors, objected to
Motorola’s claim for payment of $67 million and asserted causes of action against Motorola including preferences,
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