TerreStar to seek reinstatement of favorable judgment after shareholder successfully appeals

By Lisa Kerner

Charlotte, N.C., March 11 - A Texas state court of appeals has reversed a summary judgment that was in favor of TerreStar Corp. in a lawsuit brought by Highland Capital Management, LP and three of its affiliates, according to a form 8-K filed with the Securities and Exchange Commission.

TerreStar said the lawsuit was one of many brought by the Highland plaintiffs related to their April 2005 purchase of TerreStar's series A preferred stock.

The summary judgment was granted in November of 2007.

TerreStar is prepared to seek reinstatement of the summary judgment in the court of appeals and, if necessary, in the Supreme Court of Texas, the filing said.

In February, Highland Crusader Offshore Partners, LP and three of its affiliates filed suit against TerreStar in the Court of Chancery of the State of Delaware regarding what Highland believes is a change in control under the series A cumulative convertible preferred stock.

As previously reported, similar claims brought by Highland were dismissed in 2007 and 2008 in two separate courts.

TerreStar, formerly Motient Corp., is a Lincolnshire, Ill., mobile satellite services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.