Updated 5/28/2002

After declaring Bankruptcy, NorthPoint stated that they would pursue their lawsuit against Verizon. NorthPoint hired Folger, Levin & Kahn (FLK), a high-caliber San Francisco law firm, to sue Verizon. FLK represents only NorthPoint the Company - they do not represent NorthPoint shareholders. That's just the way it is - there is clear distinction between a Corporation and it's Shareholders.

NorthPoint's "estate", which includes shareholder interests, is represented by a U.S. Trustee, Ms. E. Lynn Schoenmann, who is a Federal Lawyer. She makes all decisions for NorthPoint.

The Bankruptcy Court oversees everything that happens with NorthPoint, even the lawsuit against Verizon. Some shareholders tried to get the Bankruptcy Court to authorize a law firm or lawyer to be the shareholder's representative in the lawsuit against Verizon. We were told that there would not be a separate shareholder's representative, but shareholder interests are represented by our Trustee, who also represents other NorthPoint interests.

NorthPoint's total financial obligations are "around" $700 million $719,292,247 has been calculated by a Member here. Globe Capital Associates has received court approval to loan $7.5 million to NorthPoint to finance the lawsuit against Verizon. This is a zero interest loan, but Globe will get 5.5% of any settlement money from Verizon or 6% of a jury award. There are also other costs that get paid ahead of shareholders, so a settlement or jury award will have to be "around" $800 million before shareholders get anything.

So, our Shareholder's Group is working to persuade and encourage NorthPoint's Trustee and the court to reject a settlement offer from Verizon that is too small to benefit shareholders.

NorthPoint's Trustee recently said that the lawsuit against Verizon is potentially worth $4 billion. So, assuming that Verizon is shown to be liable as alleged in NorthPoint's Amended Complaint (lawsuit), there is potentially PLENTY of money for shareholders benefit.

The people on NorthPoint's side who make the decisions about what size of settlement to accept are NorthPoint's Trustee and Lawyers, overseen by the Judge of the Bankruptcy Court.

If there is no settlement, the lawsuit will be presented to a jury in a trial in San Francisco Superior Court. The trial is scheduled to begin on 7/29/2002.

As NorthPoint shareholders, we would like to have a voice in these legal matters, but they won't authorize an Independent Shareholder's Representative, and many of us believe that these legal folks will not pay much attention to small, individual stockholders asking them to go for a large settlement or large Jury award from Verizon.

We didn't know of any NorthPoint Shareholder's Organization that could speak for us, so we decided to try to get a specialized, (informal) NorthPoint Shareholder's Group started.

All shareholders in the Group agree on only one, specific Purpose: we want to "DO WHATEVER WE CAN TO HELP, EQUIP, ENCOURAGE AND PERSUADE NORTHPOINT'S TRUSTEE AND LAWYERS SO THAT THEY WOULD NOT ACCEPT A SETTLEMENT FROM VERIZON THAT IS TOO SMALL TO BENEFIT NORTHPOINT SHAREHOLDERS". Over the past year, many of our Members have sent information to NorthPoint's Trustee and lawyers to encourage them and help them build their case against Verizon.

Many members of the Shareholders Group have made contact with NorthPoint's Trustee and Lawyers to encourage them to aggressively pursue the lawsuit against Verizon. We also have contacted many Media Outlets and we've written articles and done many other things that are supportive of our Purpose. There is an attorney who specializes in Constitutional Law who is following this case on our behalf.

If you agree with our Purpose (stated above), please send an Email to Frank@stockSkill.net if you want to declare your shares. Free, anonymous Email accounts are available at www.hotmail.com if you wish to stay "anonymous". Yahoo, Exite Raging Bull and other places also have free, anonymous Email accounts.

When you Email your Declaration, your contact information, Email name, address etc. will be kept confidential. See the shareholder declarations on Frank's website at www.stockskill.net We will only add your shares to the total, with your first name and initial of your last name, or your message board alias, or you can tell us to list you as "anonymous" if you prefer.

There are two posters here, Frankx and wozdak, who are keeping track of the number of Declared Shareholders and the number of Declared Shares. Every time someone declares, or cancels his or her declaration, or sells shares or buys shares, we will update the totals. As of this post, 256 NorthPoint shareholders have declared 9,737,344 shares in support of our Purpose.

Any of us can say: "I am a Member of the (informal) NorthPoint Shareholder's Group - 256 shareholders who collectively own 9,737,344 shares of NorthPoint stock. We are working to encourage and persuade the legal authorities to refuse any settlement from Verizon that is too small to benefit NorthPoint shareholders".

The whole idea is strength from numbers with a specific purpose and goal. The numbers give our Group considerable credibility and make it much harder for anyone to ignore us. We think we are having a visible, measurable and positive effect. Declare shares at Frank@stockSkill.net

wozdak