A lawsuit was filed by a current investor in shares of DISH Network Corp (NASDAQ:DISH) over alleged breaches of fiduciary duties and current long-term NASDAQ:DISH stockholders should contact the Shareholders Foundation at email@example.com
San Diego, CA -- (SBWIRE) -- 10/07/2013 -- An investor, who currently hold shares of DISH Network Corp (NASDAQ:DISH) filed a lawsuit against Dish Network LLC Chairman Charlie Ergen over $1 billion debt purchases.
Investors who purchased shares of DISH Network Corp (NASDAQ:DISH) have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges the lawsuit was filed because of the complete failure of DISH Network’s Board of Directors to withstand the domineering influence of Dish’s controlling shareholder Ergen.
The plaintiff says that in April 2013, Ergen completed the purchase of more than $1 billion of debt of a bankrupt wireless network company, LightSquared, L.P., which owns such spectrum licenses. Then in May, 2013, Ergen launched a personal $2 billion bid for LightSquared’s spectrum assets. The plaintiff claims that the bid that directly competed with DISH Network’s clear interests in bidding for these same assets.
On July 23, 2013, DISH Network Corp submitted a competing $2.2 billion bid for LightSquared’s assets as part of a reorganization plan that LightSquared’s secured lenders, including Ergen, submitted for approval in the LightSquared bankruptcy.
The plaintiff claims that if approved, DISH Network’s bid ensures that Ergen will receive hundreds of millions of dollars in personal profit on his $1 billion debt purchases.
On July 25, 2013, Gary Howard, an eight-year veteran of the board of directors of DISH Network, who is reported to have been a member of the quickly disbanded Special Committee that was created in connection with DISH Network’s possible bid for LightSquared’s spectrum assets, resigned.
The plaintiff says that the. Howard’s resignation occurred so abruptly that DISH Network was at risk of being delisted from NASDAQ for failure to comply with minimum listing requirements.
On August 6, 2013, LightSquared’s principal shareholder, Harbinger Capital Partners, filed a lawsuit against Dish Network Chairman and other seeking more than $2 billion in punitive and compensatory damages for an alleged fraudulent scheme to assume control of LightSquared and its valuable wireless spectrum. DISH Network Corp Chairman Charles Ergen asked the court to dismiss a lawsuit. On August 22, 2013, LightSquared filed a notice of intent to join the lawsuit by Harbinger Capital Partners.
On August 30, 2013, Harbinger Capital Partners submitted a plan of reorganization that competes with the July 23, 2013 plan submitted by the secured lenders. According to Harbinger Capital Partners, one of the reasons for approving its plan over the plan proposed by the secured lenders is that DISH Network is not acting in good faith in the LightSquared bankruptcy. Moreover, based on certain findings made in different bankruptcy proceedings three years ago, Harbinger Capital Partners alleges that this is not the first time that the Company has acted in bad faith in connection with a bankruptcy case.
The plaintiff also says that several years ago, Ergen caused DISH Network to purchase the debt of another spectrum owner and then used DISH Network’s creditor position to allegedly manipulate that bankruptcy process and that the bankruptcy court, federal district court and U.S. Court of Appeals for the Second Circuit all concluded that DISH Network’s vote against a competing reorganization plan should be disqualified because the Company’s debt purchases were made to manipulate the bankruptcy proceedings and, thus, were not made in good faith.
Those who purchased shares of DISH Network Corp have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego