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U.S. District Court denies Uzans' motion to stay $4.26 billion judgment pending appeal: Uzans given until August 15 to post $1 billion bond.

Motorola, Inc. (NYSE:MOT) has announced that the Honorable Jed S. Rakoff of the United States District Court, Southern District of New York denied a motion by the Uzan family of Turkey to stay the Court's $4.26 billion judgment against the Uzans pending appeal. The U.S. District Court agreed to stay execution of the judgment pending appeal until August 15, 2003, and thereafter, only if the Uzans post a $1 billion bond by that date.

Jeff Johnson, Motorola's senior corporate counsel, said, "Today's ruling is another important decision by a Court that looked at all of the facts concerning the massive global fraud that has been perpetrated against Motorola by the Uzans. This is the latest in a series of court judgments throughout the world against the Uzans."

In the ruling, Judge Rakoff stated that:

--"[T]he degree to which defendants have misled this Court is, frankly, unparalleled in the Court's experience. Nor is this conclusion limited to this Court. Magistrate Judge Maas, to whom much of the discovery in this case was referred, ultimately concluded that the defendants [the Uzans] had been 'lying to the Court since I got involved in this case.' ... The English Court that imposed criminal contempt terms of imprisonment on two of the defendants reached similar conclusions."

--"[T]he point is that the evidence is plain that the defendants [the Uzans] undertook fraudulent and collusive actions in Turkey to procure sham injunctions whose sole purpose was to avoid compliance with this Court's orders and proceedings, and that accordingly the claim that this Court's disregard of defendants' machinations somehow constitutes error is without substance."

With respect to the $1 billion bond the Court requires the Uzans to post in order to stay execution of the $4.26 billion judgment, the Uzans, according to Judge Rakoff are "[p]leading a billionaire's poverty" and "claim this is beyond their means." Judge Rakoff further stated that: "[A]ny doubt about the defendants' [the Uzans'] hypocrisy and contumacious intent was laid to rest when the Court suggested that, in place of the transfer of Telsim stock, defendants simply post a bond in this Court ... With virtually no explanation, defendants declined to post such a bond, in any amount, preferring to continue their contempt of Court."

Motorola noted that according to evidence presented by the Uzans in their court papers seeking a stay without any bond, the Uzans are reported to have a net worth of at least $1.3 billion.

As previously announced, on July 31, 2003, the U.S. District Court, Southern District of New York issued a $4.26 billion judgment in favor of Motorola against the Uzan family of Turkey for perpetrating a massive fraud against Motorola.

The U.S. District Court's ruling ordered the members of the Uzan family and the companies they control to pay Motorola $2.13 billion in compensatory damages and another $2.13 billion in punitive damages as a result of the Uzans fraudulently inducing Motorola to loan $1.8 billion to Telsim. The U.S. District Court's ruling also orders that the Uzans be arrested and imprisoned if found within the jurisdiction of the United States until such time as Uzans purge their prior contempts of court, including their defiance of a court order requiring them to deposit 73.5% of Telsim's stock into the Court's registry.
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Title Annotation:Jed S. Rakoff
Comment:U.S. District Court denies Uzans' motion to stay $4.26 billion judgment pending appeal: Uzans given until August 15 to post $1 billion bond.(Jed S.
Publication:EDP Weekly's IT Monitor
Geographic Code:7TURK
Date:Aug 11, 2003
Words:558
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