LUBBOCK, Texas-The U.S. District Court for the Northern District of Texas has dismissed a class-action lawsuit against Alamosa Holdings Inc., the Sprint PCS affiliate announced late Wednesday.
The shareholder lawsuit, which was filed in November 2003, sought damages against Alamosa and several executives for allegedly violating securities laws relating to a decline in the company’s stock price in 2002. But the court entered an order to drop the suit and denied the plaintiff’s request to amend their pleadings, Alamosa said.
“We are extremely pleased that the court has entered its order to dismiss this lawsuit against Alamosa and its officers and directors as we have always maintained that the claims were frivolous and without merit,” said David E. Sharbutt, Alamosa’s chairman and chief executive officer. “The final dismissal of this lawsuit is a welcome outcome and will help us re-deploy our time, efforts and resources toward building long-term value for all of our stakeholders.”
Following news of the dismissal, Alamosa called for the redemption of all its outstanding 12.88-percent senior discount notes due Feb. 15, 2010. As of Feb. 15 of this year, the aggregate principal of the notes outstanding was approximately $6.4 million.
Redemption price for the notes will be 106 percent of their accredited value, Alamosa said, plus accrued and unpaid interest to the redemption date. The redemption will be funded with cash on-hand and will result in projected interest savings of roughly $4 million over the next five years.
