StorageNetworks Sues Metromedia

In legal matters peripheral to anything going on with Microsoft Corp.,
StorageNetworks Inc.
this week fired off a lawsuit against optical IP
infrastructure provider Metromedia Fiber Network Services Inc. for failing to provide enough fiber optic capacity per an
agreement.

StorageNetworks, a Waltham, Mass. provider of, yes, data storage management
services and software, cited breach of contract and “unfair and deceptive
trade practices” in a suit filed Wednesday in Middlesex Superior Court in
Massachusetts.

StorageNetworks seeks a declaratory judgment, partial rescission of its
agreement with Metromedia and damages, but it did say it would continue to
honor existing commitments to New York’s Metromedia as far as their fiber
optic leasing deal is concerned.

In what is taking shape as a he-said, she-said scenario, Metromedia
responded with puzzlement to StorageNetworks’ litigation announcement by
saying it is “difficult to understand why Storage Networks does not want to
lease additional fiber optic capacity under the terms of the contract but,
on the other hand, is willing to honor its existing lease commitments.”

Oh, and Metromedia said it has fully complied with all facets of its
contract with Storage Networks, and will accordingly defend itself against
the “meritless lawsuit.”

The companies are mum on any other specifics about the case because
litigation is pending.

“I hate to be circumspect but all I can tell you is what is on the press
release,” said StorageNetworks’ spokesperson Jackie Price.

Metromedia Fiber Network, which almost two weeks ago said that Citigroup
Inc. had granted it a one-month extension of a commitment letter for a $350
million credit line, did not return calls seeking comment as of press time.

Clint Boulton
Clint Boulton
Clint Boulton is an Enterprise Storage Forum contributor and a senior writer for CIO.com covering IT leadership, the CIO role, and digital transformation.

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