Cable & Wireless is suing MCI Worldcom for an alleged failure to fulfill its role in the UK giant?s $1.75 billion acquisition of MCI's Internet business.
The lawsuit, which was filed on Wednesday, claims that MCI Worldcom, "failed to transfer MCI?s Internet customer base, impeded Cable & Wireless? ability to operate the Internet business and targeted former MCI Internet customers for marketing purposes".
European regulatory pressure forced MCI to sell its Internet business in September so it could proceed with its Worldcom merger.
MCI originally offered to sell its wholesale Internet business to Cable & Wireless, but later agreed to include the more lucrative retail operation in the deal. Cable & Wireless had forecast the unit would bring in $650 million in revenues by 2000.
But Cable & Wireless is now accusing MCI Worldcom of breaching the contract and claims it has lost a number of Internet customers and revenues and marketing opportunities as a result.
It also alleged that it had "incurred significant recruiting costs for staffing positions that MCI Worldcom failed to transfer, and has had to divert staff from other areas of its business in an attempt to fill the gap".
An MCI Worldcom spokesperson refused to confirm whether the company had received the lawsuit, saying that it "does not comment on impending litigation".
To comment on this story, email [email protected]
Evil clowns, scary nurses and sharp machetes teased in autumn PUBG Hallowe'en event
Reservoir computing can achieve the higher-dimension calculations required by emerging AI
Astronomers studying first-ever reported merger of two neutron stars claim to have detect light and gravitational waves
Allen died from complications of non-Hodgkin's lymphoma