Court of Appeals Permits Covad Antitrust Suit Against BellSouth to Go Forward

[David Farber <dave () farber net>]

Begin forwarded message:

From: Daniel Berninger <dan () danielberninger com>
Date: June 28, 2004 5:24:44 PM EDT
To: dave () farber net
Subject: Court of Appeals Permits Covad Antitrust Suit Against 
BellSouth to Go Forward

Dave,

For IP.  The announcement below reveals antitrust enforcement remains in
play and still holds promise for enabling telecom competition.

The Supreme Court in Trinko vs. Verizon narrowed the opportunities for 
end
user antitrust complaints, but the opinion did not address competitor
complaints.

Covad already won $300 million from SBC and has active complaints 
against
Verizon and Bellsouth.

Dan

..........................................
Daniel Berninger.com
w: www.danielberninger.com
v: 202.250.3428
e: dan () danielberninger com

> > > >
http://www.tmcnet.com/usubmit/2004/Jun/1052521.htm

June 28, 2004]

Court of Appeals Permits Covad Antitrust Suit Against BellSouth to Go
Forward

SAN JOSE, Calif. --(Business Wire)-- June 28, 2004 -- The United States
Court of Appeal for the Eleventh Circuit ruled last Friday that Covad
Communications Company (OTCBB:COVD) could pursue certain antitrust and 
tort
claims against BellSouth Corporation notwithstanding the Supreme Court's
recent ruling in Verizon Communications Inc. v. Law Offices of Curtis V.
Trinko, L.L.P., 124 S.Ct. 872 (2004) ("Trinko").

In 2000, Covad asserted a variety of antitrust claims against BellSouth
alleging that BellSouth used its monopoly power to engage in a concerted
effort to thwart competition in the Internet access market. The United
States District Court for the Northern District of Georgia dismissed 
Covad's
claims, holding that Covad's claims were barred by the 
Telecommunications
Act of 1996. In August 2002, the Eleventh Circuit reversed the district
court's ruling, reinstated Covad's antitrust claims, and remanded the 
case
back to the district court for further proceedings. Subsequently, the 
United
States Supreme Court issued a ruling in the Trinko case, which upheld 
the
dismissal of an antitrust case alleging a single breach of an incumbent
phone company's duty under the Telecommunications Act of 1996 to share 
its
network with competitors. The Supreme Court subsequently remanded the 
11th
Circuit decision for further proceedings in light of the Trinko 
decision.

James Kirkland, Senior Vice President and General Counsel of Covad, 
said:
"Many, including BellSouth, believed that the Supreme Court's Trinko
decision made antitrust suits challenging monopoly abuses by incumbent 
phone
companies impossible. We are pleased that the Eleventh Circuit has
reaffirmed, as Covad predicted at the time of the Trinko decision, that
phone companies will still be held accountable for such abuses under the
antitrust laws of this country. Covad intends to vigorously pursue its
claims."

About Covad

Covad is a leading nationwide provider of integrated voice and data
communications. The company offers DSL, Voice Over IP, T1, Web hosting,
managed security, IP and dial-up, and bundled voice and data services
directly through Covad's network and through Internet Service Providers,
value-added resellers, telecommunications carriers and affinity groups 
to
small and medium-sized businesses and home users. Covad broadband 
services
are currently available across the nation in 44 states and 235 
Metropolitan
Statistical Areas (MSAs) and can be purchased by more than 57 million 
homes
and businesses, which represent over 50 percent of all U.S. homes and
businesses. Corporate headquarters is located at 110 Rio Robles San 
Jose, CA
95134. Telephone: 1-888-GO-COVAD. Web Site: www.covad.com.




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