Court Blocks Adelphia-Verizon Calif. Deal
By Linda Haugsted -- Multichannel News, 3/29/2002 12:37:00 PM
A Los Angeles federal court judge has temporarily blocked the acquisition of Verizon Communications' Ventura County, Calif., cable property by Adelphia Communications Corp.
The restraining order was issued March 29 by Judge Audrey Collins in U.S. District Court for the Central District of California in Los Angeles.
It is a victory for the city of Thousand Oaks, Calif., which wants to prevent Adelphia from buying its competitor.
The order apparently does not include Verizon properties elsewhere, such as Pinellas, Fla.
The California order compels Verizon to continue offering cable service, according to the terms of its Ventura County contract, or observe the clause in the contract that requires the company to turn its plant over to the city if it no longer intends to sell cable service.
Verizon is also enjoined from firing its employees, some of whom were to lose their jobs March 30, sources said.
Any funds that have changed hands between the telecommunications companies must be segregated in a separate trust account until the dispute is adjudicated.
Adelphia sued the city in federal court March 21, alleging that attempts to block the sale violated its First Amendment rights.
The city filed its own suit in state court March 26 to uphold the franchise terms. Adelphia got the city's suit removed to federal court, leading to the March 29 injunction in the city's favor.
Cable attorneys will argue against a permanent injunction on the acquisition April 12.
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