A federal judge has refused to dismiss a class-action lawsuit against Motorola, which claims that the handset maker's former CEO, Ed Zander, and the company's board misled investors about the company's prospects.
The lawsuit, filed in August 2007, seeks to represent anyone who bought Motorola stock between July 2006 and January 2007. Judge James Moran of Chicago's U.S. District Court said the plaintiff, Eric Silverman, has made sufficient claims to withstand Motorola's efforts to get the lawsuit dismissed.
However, the judge said Motorola's current CEO, Gregory Brown, and Daniel Moloney, head of the company's advanced research group, were absolved from wrongdoing because they could not have known about the actions Motorola is accused of.
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