Covad Announces Agreement to Settle Pending California Federal Securities Class Action Litigation; Final Settlement Will Not Require Cash Contribution by Defendants.Business Editors SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 13, 2001 Covad Communications Group, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :COVD COVD College of Optometrists in Vision Development COVD Covad Communications Group (stock symbol) ), the leading national broadband services provider utilizing DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary (Digital Subscriber Line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and ) technology, today announced that the company and the other defendants in securities class action litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. pending in federal court in California have signed a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. (MOU (Minutes Of Usage) A metric used to compute billing and/or statistics for telephone calls or other network use. ) with lead plaintiffs that tentatively resolves the litigation. Under the terms of this agreement, Covad will contribute to the settlement fund shares equal to 3 1/2 percent of its fully diluted common stock as of Aug. 10, 2001. Covad's insurance carriers will fund the cash portion of the settlement. Covad and the other defendants continue to deny plaintiffs' allegations. Plaintiffs filed the litigation, D.C. Capital Partners, L.P. et al. v. Covad Communications Group, Inc. et al., Master File No. C-00-3891-PJH, in the United States District Court for the Northern District of California The United States District Court for the Northern District of California is the Federal district court whose jurisdiction comprises following counties: Alameda, Contra Costa, Del Norte, Humboldt, Lake, Marin, Mendocino, Monterey, Napa, San Benito, San Francisco, San Mateo, Santa on behalf of themselves and persons or entities that allegedly purchased or otherwise acquired Covad common stock between April 19, 2000, and May 24, 2001; received stock in connection with Covad's acquisition of BlueStar Communications Group; or purchased or otherwise acquired Covad`s convertible notes issued in September 2000. Final settlement is contingent on negotiation and execution of a formal settlement stipulation and court approval. About Covad Communications Covad is the leading national broadband service provider An ISP, telephone company, cable company or other carrier that offers high-speed communications to homes and businesses, typically for Internet access. Cable modems, DSL and T1 lines are the common technologies. See broadband, cable modem, DSL and T1. of high-speed Internet and network access utilizing Digital Subscriber Line (DSL) technology. It offers DSL, IP and dial-up services through Internet Service Providers, telecommunications carriers, enterprises, affinity groups, PC OEMs and ASPs to small and medium-sized businesses and home users. Covad services are currently available across the United States in 94 of the top Metropolitan Statistical Areas (MSAs). Covad's network currently covers more than 40 million homes and business and reaches approximately 40 to 45 percent of all U.S. homes and businesses. Corporate headquarters is located at 4250 Burton Drive, Santa Clara, CA 95054. Telephone: 1-800-GO-COVAD. Web Site: www.covad.com. Safe Harbor Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements contained in this press release that are not historical facts are "forward-looking statements," including statements concerning Covad's anticipated execution and court approval of a final settlement of the California federal class action securities litigation; Covad's ability to continue as a going concern. Actual events or results may differ materially as a result of risks facing Covad or actual results differing from the assumptions underlying such statements. Such risks and assumptions include, but are not limited to, Covad's ability to obtain court approval of the final settlement; Covad's ability to obtain acknowledgement of certain arrangements among Covad, certain of its present and former officers and directors, and Covad's insurers; Covad's ability to restructure its debt, to successfully consummate a Chapter 11 plan of reorganization, including to successfully deal with and discharge other claims pending against Covad, to raise additional capital and to continue as a going concern. All forward-looking statements are expressly qualified in their entirety by the "Risk Factors" and other cautionary statements included in Covad's SEC Annual Report on Form 10-K for the year ended Dec. 31, 2000 and in Covad's SEC Quarterly Report on Form 10-Q for the quarter ended March 31, 2001. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion