Florida-based Saturn Telecommunications Inc. (STS Telecom) said this week it has won more than $7.3 million in damages, attorneys fees and other costs from Covad Communications Co., a subsidiary of Covad Communications Group Inc.
STS, which is privately held, had accused Covad of misrepresenting the material facts of its broadband Internet access agreement. STS said it was fraudulently induced to sign the contract in 2005.
The companies settled the matter through arbitration earlier this month but Covad said it is exploring how it might challenge the findings. Doug Carlen, Covad’s general counsel, said the company provided the services contracted and that it disagreed with the arbitration’s outcome.
Covad said the issue with STS is an isolated one and there are no other such actions pending.