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Lucent Could Pay $244M

A US Bankruptcy Court judge has issued his ruling in a breach of contract and bankruptcy preference action against Lucent

December 22, 2005

1 Min Read

MURRAY HILL, N.J. -- A U.S. Bankruptcy Court judge has issued his ruling in a breach of contract and bankruptcy preference action originally brought by the trustee for Winstar Communications against Lucent Technologies in April 2001.

The opinion, written by Judge Joel B. Rosenthal, was issued late Wednesday, December 21, 2005, in U.S. Bankruptcy Court in Wilmington, Delaware (Case No. 01-1430); the trial was completed this past June. The court's decision will result in a judgment against the company for approximately $244 million, plus statutory interest and other costs. The company said that the verdict would result in a charge to earnings of approximately $300 million for the company's first fiscal quarter of 2006, which ends December 31, 2005.

"We have made strong arguments supporting our view that this suit was without merit. We are examining the judge's ruling very carefully and will vigorously appeal the decision," said Lucent Technologies General Counsel Bill Carapezzi.

Lucent Technologies Inc. (NYSE: LU)

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