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May 19, 2011

Court Dismisses Lawsuit Against City of Alameda in Telecom Litigation

The U.S. District Court for the Northern District of California has granted a summary judgment in favor of the City of Alameda on the $15 million in claims brought against it by two major investors in the City's previously owned telecommunications system.  By granting summary judgment, the Court agreed with the City of Alameda that the claims made by the investors were without merit, and the City owes them no money.

"This is excellent news!" said Alameda Mayor Marie Gilmore.  "We view the Court's careful and well-reasoned opinion as vindication of the hard work and integrity of the City Council, Public Utilities Board, City Attorney's staff, and AMP staff, as well as our outside trial counsel."

The summary judgment concludes 2? years of federal court litigation brought against the City of Alameda by two major investors in the City's previously owned telecommunications system.  In the Court's 38-page decision, handed down Monday, Judge Susan Illston summarily dismissed the claims of Nuveen Asset Management and the Bernard Osher Trust as lacking in merit.

Unless an appeal is successful, the Court's decision ends Alameda's involvement in the litigation arising from the construction and operation of its telecom system that it sold to Comcast over 3 years ago.  Filed in 2008, Nuveen and Osher brought federal and state securities law claims against the City Alameda, seeking over $15 million.

Gregory Hamm, President of Alameda's Public Utilities Board, echoed the Mayor's reaction, commenting, "We look forward to putting the distraction and expense of these meritless claims behind us and getting back to focusing on providing superior service and value to AMP's customers and stakeholders, as AMP has done for more than a century."

Acting City Attorney, Donna Mooney, commented, "The summary judgment is a strong affirmation of Alameda's commitments to openness and transparency in government and municipal operations."