NorthPoint sues Verizon

DSL provider NorthPoint Communications Friday filed a lawsuit against Verizon, just over one week after Verizon terminated an agreement that would have merged the two companies’ DSL businesses.

The goal of the lawsuit is to force Verizon to comply with the terms of the Aug. 7 merger agreement, or to obtain up to $1 billion in damages.

NorthPoint says Verizon had no legal reason to terminate the companies’ merger. NorthPoint officials believe Verizon canceled the agreement to avoid making obliged investments in NorthPoint, in the belief that this would boost Verizon’s stock price.

Verizon cited NorthPoint’s deteriorating business and financial conditions when it terminated the merger agreement in late November. NorthPoint’s stock price has plummeted to under $1 over the course of 2000.

The day before filing the lawsuit, NorthPoint laid off 19 per cent of its workforce to reduce expenses. One of the reasons for the cuts, NorthPoint officials said, was Verizon pulling out of the merger agreement.

NorthPoint can be reached at

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

Cybersecurity in 2024: Priorities and challenges for Canadian organizations 

By Derek Manky As predictions for 2024 point to the continued expansion...

Survey shows generative AI is a top priority for Canadian corporate leaders.

Leaders are devoting significant budget to generative AI for 2024 Canadian corporate...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now