Adelphia Slaps Motorola With Fraud Suit

Law360, New York (June 26, 2006, 12:00 AM EDT) -- Bankrupt Adelphia Communications Corp. is suing Motorola Inc., claiming that executives from both companies collaborated in a fraud scheme that drove Adelphia into bankruptcy.

The lawsuit, filed in U.S. Bankruptcy Court in the Southern District of New York last week, alleges that Motorola executives agreed to retroactively increase the price of TV set-top boxes it had sold Adelphia and then “kick back” the increase and call the money “marketing support” payments.

Adelphia bought most of its boxes from Motorola and Scientific-Atlanta. The latter company agreed last...
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