XO Communications 2009 Annual Report Download - page 31

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Hillenmeyer Derivative Litigation
On July 21, 2009, an XOH shareholder, Don Hillenmeyer, filed under seal in the Delaware Court of Chancery
a Complaint titled “Verified Derivative and Class Action Complaint.” On August 6, 2009, XOH filed a
redacted version of the Complaint in the Chancery Court. The Complaint names as defendants individual
members of the Company’s Board of Directors and ACF Industries Holding Corp. (“ACF Holding”), an entity
controlled by Carl C. Icahn, the Chairman of our Board of Directors and majority shareholder, and names
XOH as the nominal defendant. The Complaint challenges, among other things, ACF Holding’s recent
proposal to acquire all of the outstanding XOH common shares which it does not already own, and alleges
various breaches of fiduciary duties. The parties have entered into a Stipulation and Order Extending Time to
Answer and agreed to stay proceeding with the case until Plaintiff filed an Amended Complaint. On
December 15, 2009, based on plaintiff’s motion, the court entered an order dismissing that portion of the suit
that sought to enjoin ACF Industries Holding Corp.’s July 9, 2009 proposal to acquire all of the shares of XO
common stock that ACF and its affiliates did not already own. On January 7, 2010 the Defendants filed a
motion to stay or dismiss the remaining portion of the suit in favor of the NY litigation (R-2 v Icahn et al).
On January 26, 2010, Plaintiff filed an Amended Complaint. On February 18, 2010, Defendants filed a
supporting brief for its motion to dismiss. On March 26, 2010, plaintiff filed its answering brief to defendants’
motion to dismiss or stay. The effect of this case on the Company, if any, is not known at this time.
ITEM 4. RESERVED
NA.
PART II
ITEM 5. MARKET FOR REGISTRANTS’ COMMON EQUITY, RELATED STOCKHOLDER MAT-
TERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
XO Holdings, Inc. common stock is traded on the OTCBB and in the Pink Sheets under the symbol
“XOHO.OB.” The following table shows the range of high and low bid information for XOH’s common stock
for the quarterly periods indicated as quoted in the OTCBB. Such quotations reflect inter-dealer prices, without
retail mark-up, mark-down or commission and may not necessarily represent actual transactions.
Quarter High Low High Low
2009 2008
First . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.21 $0.14 $2.45 $1.06
Second . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.48 $0.15 $1.30 $0.41
Third . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.73 $0.27 $0.75 $0.32
Fourth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.81 $0.46 $0.40 $0.12
Holders
As of March 11, 2010, there were 145 stockholders of record of XOH’s common stock.
Dividends
We have never paid any cash dividend and do not intend to pay any cash dividend in the foreseeable future.
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