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Dycom Industries, Inc. Files Amended Complaint Against Quanta Services, Inc. For Breach Of Contract

PALM BEACH GARDENS, Fla., May 5, 2016 /PRNewswire/ -- Dycom Industries, Inc. DY, +1.01% announced today that it has filed an amended complaint (the "Complaint") against Quanta Services, Inc. PWR, +2.03% for violating the parties' 2012 stock purchase agreement, under which Dycom acquired Quanta's telecommunications infrastructure services subsidiaries for more than $300 million. The Complaint alleges that Quanta intentionally violated, and continues to violate, several contractual covenants, including both the non-compete and non-solicitation provisions. Dycom also alleges that under applicable law, Quanta is indefinitely barred from actively soliciting customers of the businesses it sold. The Complaint was filed in the United States District Court for the Southern District of New York, where an initial complaint was filed on March 31, 2016.

"We will see this litigation through to ensure that Dycom and its stockholders obtain everything that we are entitled to under the agreement," said Steven Nielsen, President and Chief Executive Officer of Dycom Industries, Inc. "When we buy a business we expect the sellers to honor their obligations."

Despite contractual restrictions on Quanta's ability to compete with Dycom in the U.S. telecommunications infrastructure business for several years and its ability to solicit and hire Dycom employees, Quanta has not complied with its obligations. As detailed in Dycom's Complaint, Dycom alleges that Quanta has violated its...