Pomerantz LLP is investigating claims on behalf of investors ofEchoStar Corporation(“EchoStar” or the “Company”)(NASDAQ: SATS). Such investors are advised to contact DaniellePeyton at newaction@pomlaw.comor 646-581-9980, ext. 7980.
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The investigation concerns whether EchoStarand certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On May 12, 2025, the Wall Street Journalpublished an article entitled “FCC Threatens Charlie Ergen'sHold on Satellite, 5G Spectrum Licenses”. The Wall Street Journalreported, in relevant part, that “[t]he Federal Communications Commission told [Charlie] Ergen, the chairman and co-founder of network operator EchoStar, that the agency's staff would investigate the company's compliance with federal requirements to build a nationwide 5G network” for its Boost Mobile subsidiary, noting that “[t]he company has spent years wiring thousands of cellphone towers to help Boost become a wireless operator that could rival AT&T, Verizon and T-Mobile, but the project has been slow-going.”
On this news, EchoStar's stock price fell $4.01 per share, or 16.58%, to close at $20.18 per share on May 12, 2025.
Then, on May 30, 2025, EchoStar disclosed in a filing with the U.S. Securities and Exchange Commission that the Company had “elected not to make an approximately $326 million cash interest payment due on May 30, 2025 (the 'Interest Payment') with respect to our 10.75% senior spectrum secured notes due 2029 (the '2029 Spectrum Notes')”, stating that the “uncertainty over our spectrum rights has effectively frozen our ability to make decisions regarding our Boost business, including continued network buildout and adversely impacts our ability to implement and adjust our overall business plan and requires us to re-evaluate the deployment of our resources.”
On this news, EchoStar's stock price fell $2.44 per share, or 12.1%, to close at $17.73 per share on May 30, 2025.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, London, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
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CONTACT:Danielle PeytonPomerantz LLPdpeyton@pomlaw.com646-581-9980 ext. 7980
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SOURCE Pomerantz LLP
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