Yes. Read around in this site:
dslprime.com
Go way down the page:
What if NorthPoint beats Verizon?
A billion dollars at stake
No one can reliably predict this one until the jury comes in, we believe after reading the contract and briefs. Clearly, we and others made a mistake accepting Verizon's Nov. 29 claim "Verizon's obligation to complete the merger was conditioned upon NorthPoint's business, operations and financial condition each remaining materially the same as they were at the time the agreement was signed. " The actual contract severely limits Verizon right to terminate or back away from the transaction. A "material adverse event" might give them grounds, and the writedowns caused by financially troubled ISPs were well publicized. But
the contract specifically excluded from the MAE clause, "facts, events, changes or effects that are generally applicable to (A) the data industry, (B) the United States economy or (C) the United States securities markets generally or the Nasdaq Technology Index in particular". Obviously, data industry problems and the NASDAQ drop were a major part of NorthPoint's problems. NorthPoint will contend the ISP problems were a reflection of the general problem. Because Covad, Rhythms, 20 or so visible ISPs, @Home, Lucent, and so many others have had severe problems, Verizon will have a burden to show NorthPoint's problems were unique.................................
Whole complaint/merger contract can be seen here:
dslprime.com |
