Echostar Corporation (SATS) Investor Lawsuit Against Directors
Echostar Corporation (SATS) Investor Lawsuit Against Directors Announced by Shareholders Foundation
SAN DIEGO, CA -- (Marketwire) -- 01/23/13 -- The Shareholders Foundation, Inc. announces that an investor in shares of Echostar Corporation (SATS) filed a lawsuit against certain directors and officers of Echostar over, among other things, alleged breaches of fiduciary duties and waste of corporate assets.
Investors who are current long-term stockholders of Echostar Corporation (SATS) shares, have certain options and should contact the Shareholders Foundation, Inc. by e-mail at email@example.com or call +1 (858) 779-1554.
The plaintiff alleges that in 2011 the board of directors of Echostar granted the Chairman of the board and controlling stockholder 1.5 million stock options to purchase the company's publicly-traded Class A common stock. The stock options were valued at approximately $21.6 million.
However, so the plaintiff, in granting the Chairman the 1.5 million stock options, the board of directors exceeded its authority under the Echostar Corporation 2008 Stock incentive plan, which limits the amount of awards that could be granted to any individual to 800,000 for any calendar year.
Moreover, so the complaint, the entire 1.5 million stock option award was fundamentally unfair to the company and its shareholders. The stated purpose of the award was purportedly to ensure that the Chairman had appropriate incentives tied to the performance of Echostar's class A shares. However, so the plaintiff, at the time of the award, the Chairman already owned approximately 43.6% of Echostar's Class A common stock, thus he already had the necessary incentive to ensure performance of Echostar's Class A shares.
Those who are current long term stockholders of Echostar shares, have certain options and should contact the Shareholders Foundation, Inc. by e-mail at firstname.lastname@example.org or call +1 (858) 779-1554.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
CONTACT: Shareholders Foundation, Inc. Trevor Allen +1 (858) 779-1554 email@example.com 3111 Camino Del Rio North Suite 423 San Diego, CA 92108