Frontier Bargaining Report #42

9/13/22

Sisters and Brothers,

The Union passed a counter proposal with several other critical items the Union would need to get us closer to meeting the membership's needs. There is still quite a bit of separation from reaching a complete tentative agreement but progress is slowly being made. The company also provided a couple of outstanding information requests with answers. The Union is reviewing the healthcare proposal for a possible counter.

We would like to share another example of how Frontier operates. It basically says that Frontier West Virginia Inc. must pay damages for improperly seeking invoice processing costs under a federal broadband technology program, a federal district court said. It will be posted below. You will clearly see how the company operates their business.

Tomorrow I will address an email from Greg Stephens who has not been at the bargaining table once, but will somehow tell you what is happening there. Greg, you are cordially invited to come to the table so you can be accurately informed when you address OUR MEMBERSHIP.

Please tell the company that you need a contract that will meet your family's needs and provide a comfortable living for them. As we can see from the fines and settlements the company has had, the customer experience is not at the forefront.

In Unity,
The Bargaining Committee
 

Frontier Improperly Billed Federal Grant Under Broadband Project

Bloomberg Law News 2022-09-13T08:58:47036581571-04:00

Frontier Improperly Billed Federal Grant Under Broadband Project

By Daniel Seiden 2022-09-09T13:18:06000-04:00

• Profit improperly sought in invoice cost claims

• Excessive coil costs claims adequately alleged

Frontier West Virginia Inc. must pay damages for improperly seeking invoice processing costs under a federal broadband technology program, a federal district court said.

Citynet LLC’s False Claims Act suit, filed in 2014, involves the Broadband Technology Opportunities Program to expand internet access to underserved areas, and the $126 million grant received by the

Executive Office of West Virginia under that program. Frontier served as WVEO’s contractor to build a fiber optic network in West Virginia.

Citynet is entitled to summary judgment for its claim that Frontier fraudulently billed the federal government for “facilities build-out” invoice processing costs, which concerned hiring contractors to

build the network, Judge John T. Copenhaver Jr. of the US District Court for the Southern District of West Virginia said Thursday.

Frontier sought costs despite omitting its violations of grant requirements, such as promising to properly document claims and not seek profit, the court said.

The federal government likely wouldn’t have approved the reimbursement if it knew the costs “were profit centers, and did not reflect Frontier’s actual costs,” the court said.

Citynet may also proceed with its claim that Frontier fraudulently charged the government for “excessive maintenance fiber coils,” the court said.

A reasonable jury could find that Frontier knowingly installed excessive coil, and withheld that information from WVEO, the court said.

Other counts CityNet raised against Frontier were rejected. Several counts failed because CityNet didn’t show that Frontier itself presented a claim to the federal government, the court said.

The court issued two other separate opinions in this case Thursday.

In one opinion, the court found that Citynet’s claims weren’t precluded by the FCA’s public disclosure bar. In the other opinion, the court said CityNet wasn’t entitled to fees associated with the federal government’s effort to collect costs from West Virginia.

Bailey & Glasser LLP and Spilman Thomas & Battle PLLC represent CityNet. Weil, Gotshal & Manges LLP and Goodwin & Goodwin LLP represent Frontier.

The case is Citynet LLC v. Frontier W. Va. Inc. , S.D. W.Va., No. 14-cv-15947, 9/8/22 .

CD/cmt
opeiu#13