It looks like Scientific-Atlanta Inc. will be dragged into a developing
securities class-action suit levied against Charter Communications Inc.
The cable-gear provider acknowledged that it was served with a complaint
Wednesday that adds it as a co-defendant -- along with Charter, several of its
past and present executives and accounting firm Arthur Andersen LLP -- in suits
filed by a group of Charter's securities investors in a St. Louis federal
The suits claimed that a set-top-box deal between Charter and S-A and a
marketing-support arrangement violated anti-fraud provisions in federal
The suits are in the process of being consolidated as a single class-action
complaint to be filed in the St. Louis court.
In a release, S-A noted that the suit does not accuse the company of any
wrongdoing in its own financial statements or disclosures to its investors. The
company plans to "vigorously defend the claim," it added.