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
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)
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.
Shareholders Foundation, Inc.
+1 (858) 779-1554
3111 Camino Del Rio North
San Diego, CA 92108
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