Motorola is facing legal action from activist shareholder, Carl Icahn, who has filed a lawsuit demanding the US mobile handset maker hand over previous sales forecasts, arguing the board's predictions have been proved wrong too often.

Mr Icahn, who owns a 6.3 per cent stake in Motorola, has filed a law suit demanding that certain materials and documents related to the company’s expectations must be made available for inspection.

He believes the management’s statements have too often been proven wrong in the past year, and wants to ascertain whether management and the board failed in their duties towards the company.

Last month, it appeared that Motorola was considering demerging its handset unit to stop falling sales.

Mr Icahn has long argued the company should break away from its devices division to leave it with its home and networks arm that sells broadband, set-top boxes and communications hardware to companies.

Motorola's former chief executive, Ed Zander, had long resisted break-up calls as well as seeing off Mr Icahn's attempt to gain a seat on the board.

Mr Zander was replaced late last year by Greg Brown, Motorola's former operating officer, who is understood to be more open to demerging the mobile products unit.

As well as launcing legal action, Mr Icahn is also pushing for three nominees to be elected to the board: Frank Biondi Jr., William Hambrecht and Lionel Kimerling. He has also nominated Icahn Group executive Keith Meister to the board.

Mr Icahn said in a letter to shareholders: “As we all are painfully aware, over the past 18 months, the market value of Motorola has dropped by over $37 billion. More than $17 per share of stockholder capital has vanished under the ‘guidance’ and ‘leadership’ of the current board.”

Motorola assured other shareholders last year that it had a plan to “right the ship” at the company, which stopped them voting for Mr Icahn’s nominees.

Times Recommends

• Food prices rise 8.3% on soaring fish and meat
• Car sales crash as economy hits skids
• House prices fall but Bank leaves rates on hold