EchoStar Corporation (formerly DISH Network Corporation) and several of its executives obtained the dismissal with prejudice of a federal securities law putative class action arising from its development and launch of a 5G wireless communications network.
The plaintiffs alleged 19 misstatements by DISH and its executives pertaining to technological progress on the network, the expected launch timeline, and commercial prospects for the wireless business. Judge Gordon P. Gallagher of the United States District Court for the District of Colorado granted DISH’s motion to dismiss, adopting S&C’s arguments that the plaintiffs failed to adequately plead falsity and scienter. The court found that plaintiffs’ allegations, even if true, showed only that DISH was “overly ambitious about its deadlines” in executing its plan—allegations that are insufficient to plead either falsity or scienter.
The S&C team consisted of Brian Frawley, James Vincenti and Matthew Seelig.