Covad (DVW)

[STEVEN_D]

Covad, Verizon Settle Disputes, Ink Pact
Wednesday December 28, 8:56 am ET
Covad, Verizon Reach Agreement to Settle Lawsuits, Enter Pact for DSL Services


SAN JOSE, Calif. (AP) -- Verizon Communications Inc. and Covad Communications Group Inc. said Wednesday they have reached an agreement to settle their lawsuits against each other, including Covad's long-running antitrust case.
Verizon and Covad, which didn't disclose financial terms of their settlement, said they also reached a related agreement that lets Covad provide DSL services over lines being used by resellers of Verizon's voice services.

The news sent Covad shares up 16 cents, or 24 percent, to 83 cents in premarket trading.

The companies said Covad's antitrust case against Verizon and a separate suit that Verizon had filed against Covad have been dismissed. The settlement also resolves all billing disputes between the companies, they said.

Separately, Covad said it reached a deal with MCI Inc. that makes Covad a preferred provider of local access and network services to MCI's DSL business customers.