Ademi LLP is investigating Echo Corporation (Nasdaq: SATS) for possible breaches of fiduciary duty and other violations of law in its transaction with DISH Network.
In the transaction, Echo Corporation stockholders are expected to receive only 2.85 shares of DISH Network Class A common stock for each share of EchoStar Corporation Class A, Class C or Class D common stock and 2.85 shares of DISH Network Class B common stock for each share of EchoStar Corporation Class B common stock they own. The transaction agreement unreasonably limits competing transactions for Echo Corporation by imposing a significant penalty if Echo Corporation accepts a competing bid. Echo Corporation insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Echo Corporation’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.