Insider trading allegations continue at Intelsat
July 27, 2022
Hill vs Silver Lake Group is the name for a consolidated Class Action against investors in Intelsat and alleging that some investors and individuals deliberately sold their share in Intelsat in November 2019 – prior to the company’s Chapter 11 bankruptcy as a result of inside information. The then chairman of Intelsat, David McGlade, is also cited in the allegations.
The case has been running since April 2020 and July 18th saw the lawyers for the named defendants ask the judge supervising the case to speed up some key decisions in the case.
The original complaint alleges that “Defendants violated provisions of the SEC’s Exchange Act by selling a block of Intelsat shares while in possession of material non-public information, including that Intelsat had met with the Federal Communications Commission (“FCC”) on November 5, 2019, to discuss the private sale of certain wavebands controlled by Intelsat for future “5G” use (the “C-Band”) and that the FCC opposed Intelsat’s then-existing proposal, instead favoring a public auction rather than private sale of the C-Band.”
The named defendants are:
BC Partners LLP;
BC European Capital VIII;
BC European Capital-Intelsat Co-Investment;
BC European Capital-Intelsat Co-Investment 1;
CIE Management II Limited;
LMBO Europe SAS;
Messrs Svider, Chairman at BC Partners, and Bateman, a partner at BC Partners, are named senior staffers involved in the allegations, as is McGlade.
The court has “respectfully” been reminded that in August 2021 the court was asked to “vacate” the action and dismiss the complaints. The court is obliged to make a decision one way or another within 120 days. That obligation has clearly been exceeded.