The charge stems from Verizon's decision toof a planned acquisition of NorthPoint Communications. Verizon and NorthPoint announced a deal in August 2000 to their digital subscriber line businesses to form a new broadband communications company.
But Verizon changed its mind in November 2000, citing "deterioration" in NorthPoint's business operations. NorthPoint eventually filed for bankruptcy and its assets wereby AT&T.
The breakup sparked lawsuits between the two companies. NorthPoint claims Verizon breached its contract and committed fraud, saying the telecommunications company never intended to complete the deal, according to Michael Kahn, attorney for the NorthPoint estate.
Verizon has filed a motion for summary judgment on the fraud claim, arguing in court documents that NorthPoint can't establish any fraudulent intent.
A jury trial will hear the breach of contract claim later this month in San Francisco.