Scientific-Atlanta Sued Over Adelphia Deal
January 7, 2004
(January 7, 2004) Atlanta, GA--Scientific-Atlanta has been served with a complaint that seeks to add it as a defendant in a previously filed securities action in federal court in New York. The suit has been filed on behalf of unnamed purchasers of debt securities issued by Adelphia Communications Corporation and Arahova Communications Inc. It alleges that certain of Adelphia's underwriters, banks, auditors, law firms, and vendors were liable to plaintiff for various alleged securities laws violations by Adelphia and certain of Adelphia's former management. It alleges that certain commercial transactions between Adelphia and Scientific-Atlanta relating to Adelphia's purchase of digital set-top boxes and a marketing support arrangement and the related accounting treatment by Adelphia resulted in violations of the anti-fraud provisions of the federal securities laws with respect to the purchasers of Adelphia's securities in whose interest the plaintiff purports to act. The suit does not allege any impropriety by Scientific-Atlanta regarding its financial statements or its investors.
Scientific-Atlanta denies the allegations and intends to defend against the claim.