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Court Upholds $1B Judgment for Motorola

Rejects claim that fraud damages amount to 'economic death sentence'

By Colleen Barry, Newser Staff

Posted Nov 22, 2007 4:29 AM CST

(Newser) – A federal appeals court has upheld a finding of $1 billion in punitive damages against the Uzan family of Turkey for defrauding Motorola out of $2 billion in start-up loans, the Wall Street Journal reports. The family had argued that the damages were so high that they amounted to an excessive "economic death sentence," which violated due process.

"Appellants have failed to demonstrate that the award exceeds their ability to pay," the court ruled. A judge reduced the damages last year from the original $4.26 billion. Motorola charges that the Uzans borrowed $2.7 billion to build a wireless infrastructure in Turkey, but lined their pockets with the funds instead.

Motorola cell phone. ((c) Titanas)

Judge upholds $1 billion judgment in Motorola's favor. (Getty Images)

Motorola wins Telsim's appeal of $1 billion judgment. (Getty Images)

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Court Upholds $1B Judgment for Motorola

Rejects claim that fraud damages amount to 'economic death sentence'

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Rejects claim that fraud damages amount to 'economic death sentence'

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Turkey • Motorola • civil lawsuits • cell phone industry

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EU to Get Universal Phone Chargers by 2010

Plan expected to reduce electronic waste, make life simpler for consumers

Mayor of Batman, Turkey, Aims to Sue Warner Bros.

Pol wants share of Dark Knight revenues for citizens of oil town

Moto Slashes Workforce

Cell phone maker cuts more jobs as it readies spin off; takes $104M loss

Motorola Left Holding Troubled Handset Unit

With no buyer in sight for wireless equipment division, company may look to self-reform

Motorola, Nortel Talk Joint Venture

Latest deal in ailing telecom-equipment industry

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