Masucci v. Fibernet Telecom Group

Summary

Settlement hearing.

"iberNet Telecom Group Inc. agreed to settle a shareholder lawsuit challenging the company's buyout by Zayo Group LLC by providing more information about the deal. FiberNet shareholder Louis Masucci accused the company in a June 19 lawsuit in Delaware Chancery Court of unfairly favoring Zayo's $11.45 a share offer over an offer of $12.50 a share from RCN Corp. RCN withdrew its proposal on July 9. "The parties believe the settlement is in the best interest of the parties and FiberNet stockholders," attorneys for both sides said in court papers. The accord, which requires a judge's approval, calls for attorneys' fees of as much as $227,500. New York-based FiberNet, with $58.2 million in sales last year, services the Los Angeles, Chicago, Miami and New York metropolitan areas. The company agreed to Zayo's cash offer on May 28. The agreement includes a breakup fees of as much as $3.72 million if the transaction fails, a provision that unfairly "locked-up" the deal, Masucci had said in his complaint. The deal is expected to close in the third quarter, FiberNet said."