Intelsat Insider Trading Suit Is Rejected Again
A federal court again rejected a class-action suit claiming insider trading of Intelsat stock before the public found out the FCC wouldn't allow a private auction of the satellite company's C-band spectrum. In an order Wednesday granting the defendants' motions…
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to dismiss (docket 4:20-cv-02341), U.S. District Judge Jeffrey White for the Northern District of California said the amended complaint surmises that Intelsat management must have updated then-Chairman David McGlade, one of the defendants, but doesn't include any information about specific communications around the time he made his stock sales. White said the amended complaint had no new allegations about defendant Silver Lake Group, and expanded allegations about defendant BC Partners still aren't sufficient to state a claim. He said with the latest amended complaint being the third iteration, "any further amendments would be futile," and ordered it dismissed with prejudice. The suit alleged McGlade and major Intelsat shareholders sold big blocks of their holdings after learning about the C-band auction decision.