Thank you, human frailty. You ensure job security for business journalists everywhere. This time the credit goes to Ed Zander, the former Motorola Inc. (MOT) CEO who helped the company topple from No. 1 in the handset market to wherever it is now.
A federal judge is allowing a class-action suit to proceed against Motorola. Investors claim Zander intentionally misled them about sales and growth. They’re angry because Motorola has posted six straight quarters of losses even as Zander insisted a sinking ship would magically right itself. Okay, he didn’t say that exactly, but shareholders are mad. After all, who invests to lose over the long term?
Current CEO Greg Brown and another exec also were accused of lying to investors, but the judge disagreed. They’re now exempt from the suit.