Bloomberg News is reporting that a lawsuit against Cisco and Motorola, filed by an investor group of Charter Communications Inc., could set a precedent in the Enron case.
Charter investors Stoneridge Investment Partners sued Motorola and Cisco’s Scientific-Atlanta unit in 2002 of “playing central roles in a 2000 scheme to add $17 million in phony revenue to Charter’s books,” reports Bloomberg News. ” The suit says Motorola and Scientific-Atlanta agreed to buy advertising on Charter’s cable systems using money given to them by Charter,” the story reads.
The dispute could set a precedent for whether investors can sue third parties, including bankers, lawyers and business partners, for contributing to a company’s wrongdoing. Enron investors say a ruling favoring Motorola and Cisco could kill their chances of recovering $40 billion from the defunct energy trader’s lenders.
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