NTL directors sued by investors

 

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By Simon Aughton

Posted on 24 Apr 2002 at 14:26

NTL investors have instigated a lawsuit alleging that company's CEO Barclay Knapp and other directors misled them about the company's financial condition.

Last week NTL announced a major financial and operational restructuring in the face of a $17 billion debt.

The lawsuit filed on 18 April in the US claims Knapp, COO Steven Carter and CFO John Gregg were responsible for misleading information which artificially increased the company's share price.

The lawsuit claims that the directors, 'acted knowingly or in such a reckless manner as to constituite a fraud or deceit,' and that as the owners of millions of share options they, 'sought to artificially inflate the price of NTL shares for as long enough time as to allow them to capitalise on the exercise and sale of such options and stock.'

NTL may be seeking a way out of its current difficulties by merging with rival cable TV and broadband Internet provider Telewest, which runs blueyonder, according to the Independent on Sunday. However before no merger is thought likely at the moment as Telewest is believed to be preparing a rescheduling package for its debts of $5 billion.