Motorola 2006 Annual Report Download - page 37

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29
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 which is awaiting decision.
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. On October 12, 2004, Motorola filed a motion to dismiss the Argent Complaint which is awaiting
decision.
On September 14, 2004, Motorola was named in a complaint filed in state court in Los Angeles, California, naming
Motorola and Scientific-Atlanta and certain officers of Scientific-Atlanta, 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. On September 19, 2005,
Motorola filed a motion to dismiss the complaint in this action 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. On
September 19, 2005, Motorola filed a motion to dismiss the complaint in this action which is awaiting decision.
Adelphia Communications Corp.ÌRelated Cases
Bankruptcy Court Lawsuit
On June 23, 2006, Adelphia objected to Motorola's claim for payment of $67 million and asserted causes of
action against Motorola including preferences, avoidance of liens, fraudulent transfers, equitable subordination and
aiding and abetting fraud as part of the ongoing Adelphia bankruptcy action in the Bankruptcy Court for the
Southern District of New York. Plaintiff is alleging damages in excess of $1 billion against Motorola for the above
stated causes of action.
Securities and Exchange Commission Investigation
Motorola is involved in an ongoing investigation by the Securities and Exchange Commission regarding
Adelphia matters, which remains outstanding. However, the Company has reached a settlement agreement with the
staff of the Northeast Regional office of the SEC that is subject to final approval of the Commission.
Motorola is a defendant in various other suits, claims and investigations that arise in the normal course of
business. In the opinion of management, and other than discussed above with respect to the Iridium cases, the
ultimate disposition of the Company's pending legal proceedings will not have a material adverse effect on the
consolidated financial position, liquidity or results of operations.