Covad

(DVW)

and

Verizon

(VZ) - Get Report

reached a comprehensive agreement that settles all of their pending litigation and disputes, including a deal to resolve any billing disagreements.

The settlement will see the dismissal of Covad's pending antitrust case against Verizon and a separate suit that Verizon had filed against Covad. Financial terms weren't disclosed.

A related agreement also expands Covad's existing commercial line-sharing pact that will enable the company to provide its xDSL services over lines being used by resellers of Verizon's voice services.

Separately, Covad signed a deal to serve as a preferred provider of local access and network services to

MCI's

(MCIP)

DSL business customers. MCI and Verizon are in the process of merging.

Shares of Covad were higher by 17 cents, or 25%, to 84 cents on the news. Verizon was down 21 cents, or 0.7%, at $30.23.

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