Attorneys Cited
Supreme Court Affirms Uzan Judgment
May 19, 2005Washington, DC, May 16, 2005—The US Supreme Court today left in place a judgment for $2.13 billion against the Uzan family for perpetrating fraud against Motorola. The decision denying the Uzans' petition for a writ of certiorari ends all the Turkish family's rights to further appeal the July 31, 2003, judgment of Judge Rakoff of the US District Court for the Southern District of New York.
The District Court had found that the Uzans committed "massive fraud" against Motorola in connection with the loans that Motorola made to Telsim, the Uzan-owned telecommunications company that was the second largest in Turkey. The District Court found that the Uzans fraudulently induced Motorola to loan money to Telsim, stole the collateral given to Motorola to secure the loan (stock in Telsim), filed false criminal charges against Motorola executives, and stole at least $1 billion from Telsim for personal use. The Court of Appeals had also upheld the District Court’s ruling.
Howard Stahl and Steve Davidson of Steptoe & Johnson LLP, lawyers for Motorola, explain that the decision lets stand a ruling that ordered the Uzans to pay $2.13 billion in compensatory damages; a decision related to a 2003 ruling for another $2.13 billion in punitive damages is still pending in another court.
Peter Lawson, Motorola's executive vice president, general counsel, and secretary, commented: “The highest court of the United States has followed the lower courts in rejecting the after-the-fact contrivances of the Uzans. We will continue in our efforts to recover Motorola’s stolen assets from the Uzans.”
For background on the case, read the following:
"Motorola Case Update: Back in Business" (8/18/04)
"Victory for Motorola" (11/10/03).
