Windstream Parent, Inc.
For the period ended Jul 31, 2025. Filed Jul 31, 2025.
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Jul 31, 2025 · Filed Jul 31, 2025
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Contents
EX-99.1 · 12. Commitments and Contingencies, Continued:
12. Commitments and Contingencies, Continued:
On May 6, 2024, the parties in the Federal Case agreed to a settlement that was approved by the presiding judge on February 6, 2025, at the scheduled fairness hearing, after no objections being filed. The deadline to appeal this final order expired April 9, 2025. Windstream’s directors’ and officers’ insurance carriers are providing full coverage for the settlement, as the Company has paid all applicable deductibles.
Key elements of the settlement include:
| • | The lead plaintiff concedes that none of the defendants are making any concession of liability or wrongdoing, and the defendants concede that lead plaintiff makes no concession regarding lack of merit. |
| • | The parties agree that the settlement releases any and all shareholder claims related to the subject matter of the lawsuit against the Company and the defendants, and the claims are fully discharged. |
| • | Upon approval by the court, the Company’s insurance carriers, on behalf of the defendants, placed in escrow the settlement amount of $85 million for distribution to class members. |
| • | A Claims Administrator was appointed by the court and, under supervision of the Court, shall provide notice of the settlement to class members and oversee the distribution of the settlement fund. |
The second lawsuit, pending in state court in Georgia (the “State Case”), was stayed in 2019. The state plaintiff failed to submit a proof of claim and in light of the Company’s emergence from bankruptcy. Final approval of the settlement of the Federal Case now bars class members, including plaintiffs in the State Case, from commencing or prosecuting any of the released claims against the defendants, including the claims asserted in the State Case. Thus, Windstream filed a motion to dismiss the State Case which was granted on April 17, 2025, after no response from the plaintiff was submitted. The deadline to file an appeal was May 17, 2025. Both of these matters are now concluded.
As of March 31, 2025 and December 31, 2024, the Company had recorded a liability for the agreed upon settlement amount of $85 million and a loss recovery insurance receivable of $85 million for insurance proceeds deemed probable of recovery. As a result of the approved settlement, the Company derecognized both the settlement liability and related loss recovery insurance receivable during the second quarter of 2025.
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