The Uzan family, owners of Telsim Mobil Telekomunikasyon Hizmetleri AS, said in a statement that the court dismissed all racketeering charges filed against them by Motorola Inc and Nokia Corp.
Motorola and Nokia spokespeople could not be reached for comment by press time yesterday. The two companies sued the Uzans fourteen months ago, saying the family took $2.7bn of vendor financing loans – $2bn from Motorola, $700m from Nokia – with no intention of paying it back.
It emerged in July 2001 that the family had defaulted on the Nokia loan due, the family says, to major economic upheavals in Turkey. When the news broke, Nokia stock was punished as investors grew cautious that its vendor financing strategy was too costly. The firms entered arbitration in Switzerland to resolve the dispute.
Motorola and Nokia sued the Uzans under various parts of the US Racketeering Influenced and Corrupt Organizations Act (RICO). As the handset makers have sought to get their money back, the Uzans have been found in contempt of court in the US and UK and have had assets frozen.
A Court of Appeals panel in New York ruled on Friday that the lower District Court incorrectly decided that Motorola and Nokia could sue the Uzans under RICO. Motorola and Nokia are reportedly sticking to their guns, claiming the ruling does not change the facts of the case.
The court also directed the original judge to consider claims of fraud filed under state law, as well as to reconsider whether the January 2002 preliminary injunction that required Telsim shares to be handed over to the court’s control may be inappropriate given the dismissal of RICO charges.
Source: Computerwire
