Judge Throws Out Burlington Telecom Suit

09/26/12 6:06AM

A Vermont judge has dismissed a lawsuit filed by Burlington residents against the city. The lawsuit sought repayment of mismanaged telecom funds.

The plaintiffs accused the city and then-Chief Administrative Officer Jonathan Leopold of fraud, deceit and breach of duty.

The Burlington Free Press reports the lawsuit was aimed at repaying taxpayers $17 million dollars borrowed from general city accounts by Burlington Telecom.


Judge Geoffrey Crawford granted the city's request to throw out the case, while he acknowledged the loans violated state regulatory constraints.

Crawford wrote in his order that taking $17 million out of Burlington Telecom would repay the taxpayers, but it would also eviscerate the company, resulting in negative consequences for the city and taxpayers.

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