August 31, 2007

Plaintiff Victory: $10 Million Judgment in Warranty Fraud Case

Call & Jensen client Nortel Networks Corp., then North America's largest maker of telephone equipment, won a $10-million court judgment against two U.S. companies it accused of selling its equipment through a warranty-fraud scheme. 

Nortel alleged the Oklahoma companies, SMC Electronics LLC and Allied Solution Technical Center LLC, claimed to be operating a network under a Nortel warranty and received replacement parts for free.  The two companies then re sold the warranty parts. Nortel's claims included trademark infringement, fraud, breach of contract, and deceptive acts and practices. "We are very pleased with the outcome in this case," a Nortel spokesman said. "This is a victory in the ongoing worldwide fight against piracy and demonstrates our commitment to putting an end to gray market fraud." 

The judgment issued a ruling of $10 million for damages, lawyers' fees, and costs.

For more information contact David Sugden at dsugden@calljensen.com