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Winstar buyers sue Lucent

MURRAY HILL, N.J.—Purchasers of Winstar Communications securities have sued Lucent Technologies Inc. for an undisclosed sum, accusing Lucent of causing Winstar’s stock to lose value before Winstar filed for bankruptcy last April.

Preferred Life Insurance Co. and other institutional investors filed the lawsuit last month in New Jersey state court.

Winstar itself filed a $10 billion lawsuit against Lucent last April, alleging that Lucent breached agreements to provide financial support to Winstar, and this lack of support contributed to Winstar’s demise.

Lucent filed a motion to dismiss Winstar’s lawsuit.

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