Opinion ID: 2737436
Heading Depth: 2
Heading Rank: 1

Heading: The Allen-Carpenter shareholder litigation

Text: Allen sued Carpenter and ATN in New Jersey state court in April 1996, asserting several claims pertaining to the management of ATN. During trial, Daniel and David Allen (the “Allens”) and Carpenter (along with their respective attorneys) entered into a handwritten settlement agreement that relieved Carpenter of any liability to the Allens in exchange for, inter alia, a $1.25 million payment to the Allens’ attorneys, a $6.25 million payment to the Allens in two installments ($250,000 and $6 million), and a stipulation of dismissal with prejudice upon execution. A formal written agreement outlining substantially the same terms was signed on January 12, 1999, and the $6 million transfer (at issue in the present case) was made on June 1, 1999. 1 1 In 1995, ATN also became involved in a contract dispute with a competitor, WATS/800, Inc. We need not discuss that litigation at length, except to note that Carpenter relinquished control of ATN to two companies controlled by WATS president Damian Freeman as part of settling that case. Freeman remains in control of ATN. 4