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Major Telecommunications Companies Offer $142.5 Million Settlement to Landowners Over Fiber Optic Controversy

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Case ID: 2562 | Miscellaneous | 11/04/2004

The parties have reached a tentative $142.5 million partial settlement in a class action filed against national telecommunications carriers Level 3 Communications Inc., Qwest Communications International, Inc., Sprint Communications Company, and Williams Communications on behalf of landowners who allege that the companies laid fiber optic cable on their land without proper permission. The parties have not announced the details of the proposed settlement, including the deadline for filing claims.

The action alleges that the companies laid the optical fiber cables on 36,000 miles of rights of way controlled by railroads. Though the railroads had the right to lay train tracks over the rights of way, the landowners allege that they did not have the right to allow the telecomm carriers to lay their cables in the same areas.

Under the settlement, compensation to class members will hinge, in part, on whether the railroad holds partial or full rights on the property. Qualified landowners who submit proof of ownership will receive a higher amount than eligible landowners who submit claims without documentation.

The proposed settlement resolves all claims against the four telecommunications companies. One defendant, Union Pacific Railroad Company, is not participating in the settlement.

The proposed settlement will not be effective until the court grants it final approval. The court has not yet scheduled a hearing on the matter.


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