Intelsat: ‘Insider trading’ appeal lodged
May 30, 2023
The Intelsat Class Action into alleged insider trading, which had earlier been dismissed by a District Court judge on April 26th, has seen an appeal lodged.
The case revolves around alleged insider trading over the sale of Intelsat shares by certain shareholders including the then chairman Dave McGlade. The sale allegedly took place ahead of the FCC deciding to itself auction off C-band frequencies. Prior to the FCC decision it had been expected that members of the Alliance (notably Intelsat and SES) would themselves sell off their frequencies.
The new appeal argues against the dismissal of the case made by Judge Jeffrey White. The appeal is lodged with the US Court of Appeals for the 9th Circuit. The confidential witnesses in the case, who gave evidence in favour of the Plaintiffs, did not add enough relevant detail to support the Class Action, said Judge White in his ruling.
The appeal is mounted by plaintiffs Walleye Opportunities Master Fund and Walleye Manager Opportunities on behalf of themselves and all others included in the Class Action.
The action cites key shareholders in Intelsat and names as defendants Silver Lake Group, L.L.C.; SLP III Investment Holdings S.à r.l.; Silver Lake Partners III, L.P.; Silver Lake Technology Investors III, L.P.; Silver Lake Technology Associates III, L.P.; SLTA III (GP), L.L.C.BC Partners LLP; Serafina S.A.; BC European Capital VIII; BC European Capital-Intelsat Co-Investment; BC European Capital-Intelsat Co-Investment 1; CIE Management II Limited; LMBO Europe SAS, and two named individuals: Raymond Svider and Justin Bateman who were directors of Intelsat.
Also named in the action is Dave McGlade, the former chairman of Intelsat.