By PETER HUSSMANN
A federal judge in Des Moines on Monday gave lawyers until March 5 to file closing documents in regard to the settlement agreement announced Monday by Iowa Telecom over class action lawsuits filed in regard to Windstream's takeover of the Newton-based company.
U.S. District Judge John Jarvey ordered that if no documents are filed, the court may order the dismissal of the action without further notice. However, within 60 days of a dismissal order, "either party may petition to have the case reinstated after showing good cause as to why settlement was not in fact consummated."
Six class action lawsuits were filed after the Nov. 24 merger announcement claiming Iowa Telecom, its board of directors and Windstream Corp., breached their fiduciary duty to shareholders by undervaluing the price received for the company. Four of the suits were filed in Jasper County District Court with the other two filed in U.S. federal court in Des Moines.
Late Monday afternoon, Iowa Telecom announced a tentative settlement of the suits by agreeing to "make certain revisions to the disclosure in the proxy statement" to be mailed to Iowa Telecom shareholders in connection with approval of the merger. No changes in the merger or the terms of the merger will be made and no additional payments will be made to shareholders as part of the proposed settlement.
Iowa Telecom and Windstream will not contest requests for attorneys fees by lawyers filing the suits on behalf of the shareholders.
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