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Motorola Faces Sanctions

In $10B mistrial, SPS Technologies attorney is seeking $100M in fines against Motorola

January 9, 2007

2 Min Read

STUART, Fla. -- In what has been described as a major victory for famed trial attorney Willie Gary and his legal team, Judge Leroy H. Moe announced today that "sanctions are in order against Motorola" for the "intentional, deliberate, blatant, willful and contumacious disregard of the rule of sequestration of witnesses," in the $10 billion lawsuit that Gary tried on behalf of client, SPS Technologies. During the post-trial hearing today, Judge Moe further stated: There is no question in my mind that it affected the outcome of the case and, therefore, was very prejudicial to the plaintiffs. The prejudice is inherent almost in the mere violation of the rule and the way it was violated. But there is no question that it was done for tactical purposes and solely for the purpose of winning at all costs. *** All that being said, sanctions are in order against Motorola."

The trial lasted over two-months and the jury could not agree on a verdict after days of deliberations.

Judge Moe denied all of Motorola's post-trial motions. The judge reserved ruling on the amount of the fines to be imposed against Motorola, but has imposed sanctions against Motorola for attorney's fees and costs expended by SPS and its attorneys. The amount will be determined at a later hearing.

"Motorola took a calculated risk and they lost," commented Willie Gary, lead counsel for SPS. "Over the last five years we have spent millions of dollars in attorney's fees and millions in costs, just to be thrown away by Motorola's outrageous conduct that was condoned by its lawyers," continued Gary. "We are asking for a fine to be imposed against Motorola of $100 million, in addition to the already awarded costs and fees, the amount of which is to be determined at a later hearing. We will be asking for millions for those amounts at that time."

Gary and his legal team allege that Motorola stole SPS' idea for a computer-based tracking technology, which led to Motorola's present vehicle tracking system, which is also licensed to major auto industries and related systems. SPS is seeking $10 billion in damages.

Motorola Inc. (NYSE: MOT)

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