Two lawsuits dismissed to make way for new one

<br>TULSA, Okla. (AP) _ Two lawsuits against Williams and its officials have been dismissed to make way for one being brought by a Colorado-based investment group. <br><br>The lawsuit was filed in U.S.

Saturday, December 23rd 2000, 12:00 am

By: News On 6

TULSA, Okla. (AP) _ Two lawsuits against Williams and its officials have been dismissed to make way for one being brought by a Colorado-based investment group.

The lawsuit was filed in U.S. District Court in Oklahoma City by the Women's Cooperative Trust Union of Colorado Springs, Colo.

It alleges that directors of Williams Communications Group Inc. did nothing to stop the company's corporate officers from pocketing millions of dollars from stock options of partner companies. The lawsuit claims such actions breached the officers' fiduciary duties.

It names Williams Communications Group, its parent company Williams Cos. Inc., and 23 officers or directors of the Tulsa-based companies.

The lawsuit is similar to ones filed last summer by two Tulsa residents against Williams Communications, plaintiffs' attorney Robert Wheeler said. Wheeler's brother and sister-in-law filed those lawsuits, which were voluntarily dismissed Thursday.

``It is substantially the same case (as those dismissed) combined into one,'' Wheeler said. ``These transactions constitute usurpation of corporate opportunities by the defendant officers.''

Executives of the Williams companies could not be reached for comment.

The plaintiff claims the executives were permitted to purchase cheap shares in two start-up technology companies with which Williams Communications was doing business. The companies, Sycamore Networks of Chelmsford, Mass., and ONI Systems Inc. of San Jose, Calif., manufacture fiber-optic switching gear used in Williams Communications' nationwide fiber-optic network.

The plaintiffs allege that Matthew W. Bross, senior vice president and chief technology officer of Williams Communications, and John C. Bumgarner Jr., president for strategic investments, made more than $40 million from discounted stock that soared after it was offered in public trading.

The suit wants the defendants to return their profits to the corporation and face fiscal and punitive damages.