Lucent Ordered to Pay Winstar Creditors
From Associated Press
A federal bankruptcy judge has ruled that Lucent Technologies Inc. must pay $224 million, plus other costs, to the creditors of the now-defunct Winstar Communications Inc., finding that Lucent induced the smaller company to purchase unneeded telecommunication equipment.
Lucent said it would appeal the ruling but take a $300-million charge in its fiscal first quarter, which ends Dec. 31.
Murray Hill, N.J.-based Lucent did not say how the charge would affect earnings.
Its shares fell 2 cents to $2.77.
The ruling was issued by U.S. Bankruptcy Judge Joel B. Rosenthal in Wilmington, Del.
