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Corporations Keyed to O’Kelley
Makor Issues & Rights, Ltd. v. Tellabs, Inc.
Citation:
513 F.3d 702 (2008)Facts
The 5500 and 6400 were Tellabs’ most important products. The 5500 was described by the company as its flagship product and the 6500 was the 5500’s heralded successor. They were to Tellabs as Windows XP and Vista are to Microsoft. That no member of the company’s senior management who was involved in authorizing or making public statements about the demand for the 5500 and 6500 knew that they were false is very hard to credit, and no plausible story has yet been told by the defendants that might dispel the court’s incredulity. Defendants argue that they could have had no motive to paint the prospects for the 5500 and 6500 systems in rosy hues because within months they acknowledged their mistakes and disclosed the true situation of the two products, and because there is no indication that Notebaert or anyone else who may have been in on the fraud profited from it financially.
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