Labaton Keller Sucharow LLP is co-lead counsel in a securities class action against Uniti Group Inc., (Uniti or the Company), and certain of its senior executives (collectively, Defendants). The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and SEC Rule 10b-5 promulgated thereunder, on behalf of all persons or entities who purchased or otherwise acquired Uniti Securities during the period from April 24, 2015, to June 24, 2019, inclusive (the Class Period).
Windstream is a telecommunications provider that owns and operates wireless telecommunications networks. In April 2015, Windstream spun-off certain of its telecom distribution assets into a separate, publicly traded company called Communications Sales & Leasing, Inc. and which is now called Uniti Group, Inc (the Spin-Off). In connection with the Spin-Off, Uniti agreed to lease its telecom distribution assets to Windstream, which, through its operating subsidiaries, continued to use and operate those assets as it had before the Spin-Off. The operative Amended Complaint alleges that the Spin-Off transaction violated restrictive covenants governing Windstream’s then-existing debt, which included a prohibition on sale-leaseback transactions and limitations on the amount of additional debt Windstream could undertake.
Defendants moved to dismiss the Amended Complaint on July 10, 2020, which plaintiffs opposed on September 8, 2020. On October 23, 2020, Defendants filed a reply in further support of their motion to dismiss. During November and December 2020, the Parties submitted supplemental authority in support of their respective positions related to Defendants’ motion to dismiss. On March 31, 2021, the Court denied Defendants’ motion to dismiss.
In April 2021, Defendants filed an Answer to the Amended Complaint and a Motion for Reconsideration or, in the Alternative, Certification for Interlocutory Appeal. Plaintiffs and Mr. He opposed Defendants’ motion for reconsideration. In August 2021, Defendants filed a reply in further support of their motion for reconsideration. The Court denied Defendants’ motion for reconsideration or certification of interlocutory appeal. During the course of the Action, the Parties engaged in extensive discovery.
Plaintiffs moved for class certification in October 2021 which included submission of expert reports.
On March 24, 2022, the Parties participated in a full-day mediation session. No agreement was reached at the March 24, 2022, mediation session. On March 25, 2022, the Mediator made a formal mediator’s proposal that the case settle for $38.875 million. The Parties accepted this proposal and subsequently began negotiating a term sheet, the settlement agreement and its supporting exhibits. The Parties executed the Stipulation of Settlement on June 17, 2022.
The case is In re Uniti Group Inc. Securities Litigation, No. 4:19-cv-00756 (E.D. Ark.). Labaton Keller Sucharow represents plaintiffs Steamfitters Local 449 Pension Plan, Wayne County Employees’ Retirement System, and David McMurray, on behalf of himself and as sole beneficiary of the David McMurray R/O IRA.
Submit Claim Form
If you purchased or otherwise acquired Uniti Securities during the period from April 24, 2015, to June 24, 2019, inclusive and were damaged thereby, you may be entitled to a payment from a class action settlement. To be eligible for a payment, you must submit a Claim Form to the Claims Administrator by December 1, 2022.
Settlement Hearing
The Court held the Settlement Hearing on November 7, 2022, at 11:00 a.m. CDT, remotely, via videoconference and approved the Settlement and Plan of Allocation, and awarded attorneys' fees and expenses.
If you have questions about the Settlement, please contact Labaton Keller Sucharow at settlementquestions@labaton.com or 1-888-219-6877, or contact the Claims Administrator, at 1-(844) 594-2510.
