Creditors Sue Verizon For $2B Over FairPoint Deal

Law360, New York (November 1, 2011, 8:08 PM EDT) -- Former creditors of FairPoint Communications Inc. slapped Verizon Communications Inc. with a $2 billion fraudulent transfer suit Friday in North Carolina, claiming the telecom giant drove FairPoint to bankruptcy by luring it into the "disastrous" purchase of outdated telephone infrastructure.

The lawsuit, filed by a group called the FairPoint Communications Inc. Litigation Trust, maintains that Verizon duped the company into taking on $2.5 billion in debt to acquire Verizon's conventional landlines and DSL technologies in Maine, New Hampshire and Vermont in 2008.

Of the debt FairPoint...
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