Schall Law, which describes itself as a “national shareholder rights litigation firm”, says it is investigating claims on behalf of investors who hold stock in Intelsat.
Los Angeles-based Schall is looking to mount a Class Action of shareholders who have lost money and, if successful, would mount an action based on alleged “violations of securities laws”.
The action may come to nothing but it is another indication that investors are looking for someone to kick over the collapse in Intelsat’s share price.
Last week a detailed report in the New York Post alleged that two important investors in Intelsat “partly escaped” the devastating collapse in Intelsat’s share price. The newspaper states that BC Partners and Silver Lake Partners, the two largest holders of Intelsat stock, “managed to sell a big chunk of Intelsat shares before the company’s hopes began to unravel”.
The newspaper also reported that other Intelsat investors are concerned and demanding that the share sale be investigated. One securities lawyer told the newspaper that the powerful Securities & Exchange Commission would open an inquiry into the share movements. Another, a hedge fund investor, confirmed to the newspaper that they were talking to lawyers about possible legal action.
Another action has already been filed with the US Securities & Exchange Commission by Appaloosa LP on February 18 as the lead name in a consortium of shareholders expressing dissatisfaction with the recently announced proposed order issued by the FCC with respect to an auction of C-band spectrum currently licensed to the Issuer and other satellite operators.
Appaloosa is arguing that Intelsat should not accept the FCC’s C-band Order because the FCC’s terms are “manifestly unfair” to Intelsat.