NorthPoint Suit Against Verizon to Proceed

Verizon Communications Inc. has failed to persuade a judge to dismiss most of a $4-billion lawsuit by NorthPoint Communications Group Inc. that accuses the largest U.S. local-telephone company of unfairly abandoning a takeover.

A Santa Clara County Superior Court judge rejected Verizon’s bid to throw out claims of fraud and punitive damages totaling as much as $3 billion.

NorthPoint sued Verizon in November 2000 after the New York-based phone company scrapped plans to acquire the high-speed Internet provider for an estimated $2.15 billion.

NorthPoint filed for Chapter 11 bankruptcy protection weeks later in January 2001.

The ruling by Judge James McBride clears the way for a California jury to begin hearing San Francisco-based NorthPoint’s lawsuit on July 29.