News summary:

• Non-practicing entity litigation continues to create costly, time-consuming pressure across the technology industry
• Adtran has reached a full settlement following counterclaims, with payment made to Adtran and all claims dismissed with prejudice
• Outcome reflects Adtran’s commitment to defend its innovations, customers and business against meritless patent assertions

Adtran today announced it has resolved a patent litigation matter, resulting in a full settlement and dismissal of all claims with prejudice. The case, initiated in 2020 by a non-practicing entity asserting five patents, was transferred to the US District Court for the Northern District of Alabama in 2021 following a successful motion by Adtran. Adtran subsequently filed counterclaims, including bad-faith patent assertion under Alabama statutory law. The settlement includes payment to Adtran to resolve its counterclaims. Terms of the agreement remain confidential.

“This outcome reflects a disciplined and consistent approach to protecting our innovation and our customers,” said Justin Ferguson, SVP and general counsel at Adtran. “We take all claims seriously, but we will not hesitate to defend ourselves when assertions lack merit. Situations like this place unnecessary strain on technology providers and divert resources from advancing networks and services. By advancing our counterclaims, we have reinforced our position and demonstrated that we will follow matters through when required.”

The resolution of this matter reflects Adtran’s commitment to safeguard its technology, customers and business. The company will continue to respond firmly to meritless patent assertions and pursue available remedies where it believes claims are brought in bad faith.

“This resolution sends a clear message: Adtran is not an easy or inexpensive target for non-practicing entity litigation,” Mr. Ferguson continued. “When necessary, we will pursue counterclaims and other available remedies to protect our innovation, our business and our customers.”

About Adtran

ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) is the parent company of Adtran, Inc., a leading global provider of open, disaggregated networking and communications solutions that enable voice, data, video and internet communications across any network infrastructure. From the cloud edge to the subscriber edge, Adtran empowers communications service providers around the world to manage and scale services that connect people, places and things. Adtran solutions are used by service providers, private enterprises, government organizations and millions of individual users worldwide. ADTRAN Holdings, Inc. is also the majority shareholder of Adtran Networks SE, formerly ADVA Optical Networking SE. Find more at Adtran, LinkedIn and X.

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ADTRAN Holdings, Inc.
www.adtran.com

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This outcome reflects a disciplined and consistent approach to protecting our innovation and our customers.