In the fourth quarter, Motorola reported that they had a net loss of $3.6 billion. Shortly after the announcement, CFO Paul Liska stepped down. However Liska is claiming that he was fired for bringing up some of the issues involved with the company’s financials.
Liska decided to file a retaliatory discharged lawsuit which involves a breach of contract related to his firing. Liska said that the financial forecasts were not accurate and ignored the facts that were known to Motorola co-CEOs Sanjay Jha and Greg Brown. Liska brought up concerns to the company’s audit team before presentations with credit agencies were made. If the presentations were not changed, then it would lead to credit deterioration by the agencies.
Liska was eventually fired in January 29 and officially left on February 19 according to an SEC filing. The filing reported that Liska was fired due to “serious misconduct and incompetence.” Ouch.