Zayo sues New Mexico telecom for $1.1M in unpaid services

BOULDER and ALBUQUERQUE — Zayo Group Holdings Inc. (NYSE: ZAYO) is going after an Albuquerque internet provider for allegedly failing to pay for contracted services for years.

In the suit filed in the U.S. District Court of Colorado, the Boulder-based internet infrastructure company alleges CityLink Fiber Holdings Inc. and its subsidiary has forgone paying monthly fees for maintaining its internet-based phone service in 2012 and 2017 between two different accounts. 

Zayo kept operating those accounts as a good-faith gesture, but alleges CityLink continually failed to make an effort to pay off its balance. Zayo stopped servicing those accounts in summer and fall 2018 after they accumulated balances of more than $1.1 million combined. 

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The company is asking the court for a judgment against CityLink for $1.1 million, interest and attorney’s fees.

CityLink provides fiber internet and home voice service in the Albuquerque metro area. The company did not return a request for comment Wednesday morning.

Zayo is still on track to delist itself from the New York Stock Exchange and sell to two private investment companies in a $4.3 billion deal in the first half of 2020.