Scientific-Atlanta Inc. said Wednesday that it has been served with a complaint that seeks to add it as a defendant in a previously filed securities action in federal court in New York.
The suit -- which is not a class action -- was filed by W.R. Huff Asset Management Co. LLC, reportedly on behalf of and as an investment advisor and attorney-in-fact for certain unnamed purchasers of debt securities issued by Adelphia Communications Corp. and Arahova Communications Inc.
The complaint alleged that certain Adelphia underwriters, banks, auditors, law firms and vendors were liable to the plaintiff for various alleged securities-law violations by Adelphia and members of the MSO’s former management.
It alleged that certain commercial transactions between Adelphia and S-A relating to Adelphia's purchase of digital set-top boxes and a marketing-support arrangement, along with the related accounting treatment by Adelphia, resulted in violations of the anti-fraud provisions.
The suit did not allege any impropriety by S-A regarding its financial statements or its investors.
S-A denied the allegations and said it intends to vigorously defend itself against the claim.
