LindyBill, if everyone just does what they said they'd do in the contracts they agreed to, everything would be hunky dory. Provided of course that the contracts were honest, not underhand or illegal.
Sometimes, things don't work out well and there is disappointment all around. That's life. Grin and bear it. If Qualcomm gives money contrary to agreements to laid off employees or to those who are transferred to L M Ericsson as part of the infrastructure division, then Qualcomm is damaging remaining employees' stock value and THEY will start a class action lawsuit. As already suggested by others, the satisfactory settlement of the dispute would more likely enhance the company's value, but some might not see it that way.
Squabbling over the profits was not what Bill Frezza meant when he thought that Qualcomm would end in lawsuits. He meant people would be sueing for lack of profits and failed CDMA networks. At least this is a better problem for Irwin and Co to solve.
It always seems odd to me that employees can be 'sold' with a division of a company. I understand that if we all sell our Qualcomm shares to Ericy, then the company entity continues and there is a new owner. But when a division or the assets of a division are sold, the employees are fired and rehired by the buying company under new contracts. So the reality for the infrastructure employees is that they have been fired. Now L M Ericsson wants to hire them [to continue as they are to all intents and purposes, but under new management and employed by another company]. I don't think I really 'get it'.
I suppose the deal between Qualcomm and Ericy would be that unless a certain number of employees sign up to work for Ericy, then the deal is not completed. If they hold off on signing up unless they get a good deal, then the division would simply be closed, they'd get nothing, Qualcomm would miss out on the sales and royalties from the division, Ericy would get nothing too, and would have to start from scratch. Presumably buying just the assets and hiring people as best they could to get things rolling again. That would work, but be very messy, take a long time and cost them heaps.
I bet Ericy wants the deal more than Q! does. If Q! ends up closing the division, rehiring for other purposes those people who can fit in elsewhere and simply laying off the rest, they'll not really lose a huge amount. Lucent and other licensees will fill Ericy's shoes to supply NTT, China and elsewhere.
Any explanation appreciated.
Mqurice
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