Motorola Fails to Prove Fraud Against Telsim

In its judgment, the Court found that Motorola did not prove that it was defrauded by Uzans. In addition, the Geneva Court also found that Motorola had not proved that it actually suffered damage, Telsim said.

"This is a significant ruling for Telsim," Hakan Uzan, CEO of Telsim, in a statement. "Motorola has failed to demonstrate that it had been defrauded by the owners of Telsim and it also failed to show that it has suffered damages.

"The court acknowledged that Telsim fell victim to a series of exceptional events — an unprecedented economic crisis, the collapse of the Turkish Lira, and the legal requirement to increase the share capital in Telsim — that caused us to seek to reschedule our dollar denominated loans. We honored our obligations towards Motorola. But by refusing to acknowledge the explicit provisions for resolving such disputes through arbitration in Switzerland, Motorola has failed to honor its obligations to Telsim."

Telsim goes on to point out Motorola’s recently 10 percent Q2 fall and noted unnamed analyst predictions that Motorola is likely to lose market share because of slower product introductions than its rivals. Uzan then called Motorola’s litigation "distracting and futile."

"The Geneva Court decision has confirmed the futility of Motorola’s pursuit of costly and damaging litigation in the U.S. courts," he said. "We are confident that the other claims being pursued by Motorola will also fail … Yet Motorola management seems intent on pushing ahead with this distracting litigation while the business is falling behind in terms of its performance and its competitive position. This benefits no one, particularly not Motorola shareholders.

"Telsim is a profitable business with over six million customers. I urge Motorola once again to give up the legal actions it pursues under U.S. laws and, instead, stand by our multiple agreements to settle this dispute by arbitration in Switzerland."

Motorola could not be reached for comment.