FairPoint Communications 2005 Annual Report Download - page 245

Cellco is also defending lawsuits filed against itself and other participants in the wireless industry alleging various adverse effects as a result of wireless
phone usage. Various consumer class action lawsuits allege that Cellco breached contracts with consumers, violated certain state consumer protection laws
and other statutes and defrauded customers through concealed or misleading billing practices. Certain of these lawsuits and other claims may impact the
Partnership. These litigation matters may involve indemnification obligations by third parties and/or affiliated parties covering all or part of any potential
damage awards against Cellco and the Partnership and/or insurance coverage. Attorney Generals in a number of states also are investigating certain sales,
marketing and advertising practices. All of the above matters are subject to many uncertainties, and outcomes are not predictable with assurance.
The Partnership may be allocated a portion of the damages that may result upon adjudication of these matters if the claimants prevail in their actions.
Consequently, the ultimate liability with respect to these matters at December 31, 2005 cannot be ascertained. The potential effect, if any, on the financial
condition and results of operations of the Partnership, in the period in which these matters are resolved, may be material.
In addition to the aforementioned matters, Cellco is subject to various other legal actions and claims in the normal course of business. While Cellco’s legal
counsel cannot give assurance as to the outcome of each of these matters, in management’s opinion, based on the advice of such legal counsel, the ultimate
liability with respect to any of these actions, or all of them combined, will not materially affect the financial statements of the Partnership.
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