We are investigating Uniti Group Inc. f/k/a Communications Sales & Leasing, Inc. (UNIT) (“Uniti” or the “Company”) for potential violations of the federal securities laws.
On March 26, 2015, Uniti disclosed approval of the Company’s spin-off from Windstream Holdings, Inc. (“Windstream”). Following the spin-off, Windstream became Uniti’s primary customer. Then, on September 21, 2017, hedge fund Aurelius Capital Master, Ltd. (“Aurelius”), the owner of more than 25% of Windstream’s unsecured notes due 2023, provided written notice to Windstream that the spin-off of Uniti constituted a sale and leaseback in breach of the notes’ indenture. On February 15, 2019, United States District Judge Jesse M. Furman released Findings of Facts and Conclusions of Law declaring that Windstream had breached the indenture and awarding Aurelius a monetary judgement in the amount of $310,459,959.10, plus interest. On this news, Uniti’s stock price fell $7.47 per share, or 37.39%, to close at $12.51 per share on February 19, 2019.