Mediaone Company

AT&T Inc., the largest U.S. telephone company, must face a lawsuit by former MediaOne Group Inc. executives who say a buyout reduced the value of their stock options, a judge ruled. The executives, including ex-MediaOne Chief Executive Charles Lillis, can go to trial to press claims that they lost millions in the fallout from AT&T Corp.'s 2000 takeover of the cable company, Delaware Chancery Court Judge Stephen Lamb ruled. SBC Communications Inc. acquired AT&T Corp.

MediaOne is opening up its advanced cable network to provide high-bandwidth network services to corporate customers in and around Los Angeles under the brand name MediaOne Connect, the company will announce today. The Southland will be the first market in the nation for three new services designed for transmitting data-rich files, including one for video.

Home equity lender FirstPlus Financial Group Inc. said Tuesday that third-quarter earnings plunged 70%. The company also told investors and analysts in a conference call that it faces hurdles before it can close an agreement to sell off key portions of its business to Coast-to-Coast Financial Corp.--a sale that's essential to its survival. "If the Coast-to-Coast deal, which is dependent on financing, isn't completed, they're going to be out of business," said Michael Abrahams at Sutro & Co.

Paul Allen wants to be the cable king of Los Angeles. Sources close to the computer billionaire say he has had recent negotiations with Century Communications, soon to be the dominant cable supplier in Los Angeles, about an acquisition that would be valued at more than $4 billion. Some sources say those talks broke off for the second time, but that if a deal isn't struck with the New Canaan, Conn.-based firm, Allen will simply move down his shopping list.

Cisco Systems Inc. said Tuesday that it has signed a contract with US West Inc.'s MediaOne cable TV unit to sell existing equipment and develop new gear to let consumers access the Internet using cable modems. The companies did not disclose the value of the contract. MediaOne, one of the largest U.S. cable companies, will spend several million dollars for Cisco computer-networking equipment so it can expand the Internet-related services it offers subscribers.

MediaOne Group Inc. said its top programming executive, Jedd Palmer, left the No. 3 U.S. cable television company after less than a year amid a realignment. Judi Allen, former senior vice president of marketing, has assumed Palmer's duties as well as other tasks in the newly created position of senior vice president for video. She will oversee MediaOne's cable TV programming and content. The Englewood, Colo.