- On January 28, 2013, the U.S. District Court for the District of Massachusetts brought the long-running saga between Global NAPs and Verizon one step closer to an end. It approved the motion from Global NAPs’ receiver to approve a settlement with Verizon resolving two lawsuits Verizon had filed against Global NAPs in federal court in New York – one filed in 2003 seeking over $36 million, and a second filed in 2007 seeking over $87 million. The settlement fully resolves those two New York cases, and reduces the outstanding judgment in this Massachusetts federal suit by approximately $21 million, to about $36.2 million. In approving the settlement, the court rejected objections from Global NAPs’ former CEO, Frank Gangi, who argued that the receiver undervalued Global NAPs’ counterclaims in those cases and that “the receiver should be forced to litigate Verizon’s claims to judgment.” The court reasoned as follows: “While Gangi considers Global NAPs’ claims worth a guaranteed $45 million, I am not convinced Global NAPs could recover that amount. Furthermore, the New York litigation is undeniably complex, and it is sure to prove time-consuming and highly expensive if prosecuted all the way to final judgment. … I conclude that the proposed settlement is fair and equitable.” The court also brushed aside Gangi’s motion for contempt against Verizon and his motion to clarify how his personal counsel could obtain and review documents for privilege along with the receiver’s counsel. Global NAPs, Inc. v. Verizon New England, Inc., No. 1:02-cv-12489-RWZ (D. Mass. Jan. 28, 2013).
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