Summary
Equinix Inc. (EQIX) announced on September 17, 2010, that it has been served with a lawsuit filed in the Superior Court of California by 529 Bryant Street Partners LLC. The lawsuit targets Equinix's wholly owned subsidiaries, Switch & Data CA Nine LLC and Switch & Data Facilities Company, Inc., concerning a lease agreement for a data center located at 529 Bryant Street in Palo Alto, California. The plaintiff alleges breaches of non-monetary lease obligations and seeks damages, specific performance, and ejectment from the premises. Equinix, through its CFO Keith D. Taylor, has stated that the company believes the lawsuit lacks merit and intends to defend itself vigorously. The company is also reportedly in discussions with the plaintiff to reach a settlement. Investors should monitor the developments of this legal matter as it could potentially impact operations and financials if an unfavorable resolution is reached.
Key Highlights
- 1Equinix Inc. (EQIX) was served with a lawsuit on September 14, 2010.
- 2The lawsuit was filed by 529 Bryant Street Partners LLC in the Superior Court of California, Santa Clara County.
- 3The suit targets Equinix's wholly owned subsidiaries, Switch & Data CA Nine LLC (Tenant) and Switch & Data Facilities Company, Inc. (Guarantor).
- 4The core of the lawsuit alleges breach of non-monetary lease obligations for a data center at 529 Bryant Street, Palo Alto, California.
- 5The plaintiff is seeking monetary damages, specific performance of lease obligations, and ejectment from the premises.
- 6Equinix believes the lawsuit lacks merit and intends to defend itself vigorously.
- 7The company is also engaged in discussions to reach a mutually agreeable settlement.