Release Date: Tuesday, September 30, 2008

Moorhead Public Service Settles GoMoorhead.com Litigation

Moorhead Public Service (MPS) announced today that they have settled their lawsuit against Virchow, Krause & Company, LLP. (VK); Ingenious Network Solutions, Inc. d/b/a First Mile Wireless (FMW); EnGenius Technologies, Inc. (EnGenius); and Tropos Networks, Inc (Tropos).  This settlement will conclude all legal matters between MPS and the defendants.  Reflected in the settlement will be cash payments totaling $465,000, in addition to discounted past and future product and services.  The total settlement is estimated at $1,100,000.

In 2006, MPS alleged breach of contract and negligence against VK, the consulting firm hired by MPS to deploy the 13-square mile Wi-Fi mesh network used by GoMoorhead.com; breach of contract, breach of express warranties and negligence against FMW, the designer and installer of the mesh network; and breach of express and implied warranties against EnGenius, the vendor of equipment used in customers' homes.  GoMoorhead.com launched in September 2005.  In late 2006 MPS began a recall of equipment used in customers' homes and replaced them with equipment that created stronger connections with the mesh network.

"We are pleased to be able to bring this long and drawn out process to a conclusion," stated Ken Norman, Moorhead Public Service Commission (Commission) President. "It was unfortunate that we were drawn into an event like this; however, the settlement reached is good for the customers of MPS and the residents of Moorhead." Bill Schwandt, MPS General Manager, added, "Many MPS employees have spent countless hours correcting and optimizing the network and I am proud to say GoMoorhead.com has risen to be a strong Internet service provider for the residents of Moorhead."

During its meeting on Tuesday, September 30, 2008, the Commission began considering the options that surround the uses of these funds. Possibilities include purchasing equipment to strengthen the system and to upgrade mobile application of the system.

MPS is a community-owned utility serving the residents of Moorhead, Minnesota, with electricity, water, and broadband Internet access.

If you would like more information about this topic, or to schedule an interview, please call Communications Director Doug Rogness at 218-299-5407 or e-mail Doug at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . You can also contact General Manager Bill Schwandt directly at 218-299-5404 or e-mail Bill at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .