Intelsat ‘insider trading’ action fails
September 28, 2022
By Chris Forrester
A California court cleared Intelsat’s pre-bankruptcy major shareholders of insider trading allegationson September 27th.
The action started in late 2019 with allegations over violations of the federal securities laws. The lawsuit alleges that the named defendants violated the Exchange Act by selling Intelsat shares while they were in possession of material non-public information, including that Intelsat SA had met with the FCC on November 5th 2019, to discuss the private sale of certain frequencies controlled by Intelsat SA for future 5G use (the ‘C-Band’).
It was alleged that on November 18th 2019, after the FCC announced that it would publicly auction the C-Band, that Intelsat SA had been wanting to sell privately. Intelsat SA’s share price crashed 40 per cent to close at $8.03 per share.
Intelsat’s then chairman, Dave McGlade, was included in the action.