EchoStar facing Class Action?
August 21, 2023
By Chris Forrester
EchoStar, in the process of being merged with satellite pay-TV operator Dish Network, could be facing a Class Action of investors who are dissatisfied with the merger plan.
Lawyers for the Action are saying the investigation concerns whether the EchoStar board breached its fiduciary duties to shareholders by failing to conduct a fair process prior to the agreement, and whether the Dish merger is fair for EchoStar shareholders.
Such Class Actions are not unusual and while some will succeed the rewards are frequently modest. For example, a not dissimilar shareholder Class Action that also included claims against EchoStar share activity in 2021 resulted in compensation of just $21 million. Once the lawyers fees were deducted the eventual disbursements were measured as Cents/share.