Lucent: Sees $300 Million Charge After Losing Winstar Ruling
MURRAY HILL, N.J. -(Dow Jones)- Lucent Technologies plans to take a fiscal first-quarter charge of $300 million after a federal bankruptcy court ruled against the company in a suit brought in 2001 by Winstar Communications.
Lucent said it will "vigorously appeal" the ruling.
In a press release Thursday, Lucent said Judge Joel Rosenthal, of the U.S. Bankruptcy Court in Wilmington, Del., ordered the company to pay about $244 million plus statutory interest and other costs.
The ruling was issued late Wednesday.
Winstar sued Lucent, a stock-market darling during the technology boom, accusing the company of causing its bankruptcy.
After filing for court protection in 2001, Winstar sold its assets to IDT Corp. for $38 million.
Analysts expected Lucent to earn about 4 cents a share in the first quarter, which ends Dec. 31. In the year-ago quarter, the company earned $174 million, or 4 cents a share.
Lucent shares recently listed at $2.78, down a penny, or 0.4%, shortly after the market opened.
Company Web site: http://www.lucent.com
-Jeremy Herron; Dow Jones Newswires; 201-938-5400; AskNewswires@DowJones.com
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Posted to the site on 22nd December 2005