Court Dismisses Yet Another Highland Lawsuit Against Motient; Orders Highland to Pay Costs Calls Highland's Section 220 Demand ''Patently Inappropriate''.LINCOLNSHIRE, Ill. -- Motient Corporation (MNCP) announced today that the Delaware Court of Chancery court of chancery n. pl. courts of chancery A court with jurisdiction in equity. Noun 1. court of chancery - a court with jurisdiction in equity chancery has dismissed a lawsuit brought by one of Highland Capital Management's hedge funds seeking to force Motient to turn over its books and records for Highland's inspection, calling it "patently inappropriate." The Court also ordered Highland, which is managed by James Dondero, to pay Motient's costs. Highland's Select Equity Fund filed the lawsuit under section 220 of the Delaware Corporate Code. But in referring to Highland's actions in commencing and trying the suit, the Court found that there were "a remarkable confluence of events that amount to an abuse of the Section 220 process," and that Highland's "purported purpose in bringing this Section 220 action...verges on being a ruse." "We are extremely pleased that the Court today recognized that Highland's suit was an abuse of the legal system," said Robert Macklin, Motient's General Counsel. "Highland has filed multiple lawsuits against Motient and, in one suit, is trying to force Motient to repurchase a major part of its ownership interest at a price that would represent a direct transfer of value from all of Motient's other stockholders to Highland. As we've said before, we believe that Mr. Dondero and his Highland hedge funds use litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. as an investment strategy, and we believe that this suit was just another example of Mr. Dondero trying to use the legal system to intimidate Motient, at great cost to Motient's shareholders." "Our shareholders should ask themselves whether Highland's interests are aligned with their own. We urge all shareholders to support the Board's nominees at the July 12th Annual Meeting by signing, dating and returning the WHITE proxy card A proxy card is an easily-acquired or home-made substitute for a collectible card. A proxy is used when a collectible card game player does not own a card, and it would be impractical for such purposes to acquire the card. today." About Motient Corporation: Motient is the controlling shareholder of TerreStar Networks TerreStar Networks is a Reston, VA-based company that operates integrated satellite and terrestrial telecommunications systems. It is a subsidiary of TerreStar Corporation. Inc., a development-phase satellite communications company Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. , and a minority shareholder of Mobile Satellite Ventures Mobile Satellite Ventures (MSV) is a Reston, VA company that develops telecommunications systems that integrate satellite and terrestrial radio communication technologies into one system. LP, an established satellite communications company. TerreStar and MSV mSv Millisievert (measure of radiation dose) MSV Medical Society of Virginia MSV Maize Streak Virus MSV Mobile Satellite Ventures LP (Reston, Virginia) MSV Men Stopping Violence are both in the process of developing next-generation hybrid networks that plan to provide ubiquitous wireless service by integrating land-based towers and powerful satellites. These new networks will deliver services to standard wireless devices everywhere in North America. For additional information on Motient, please visit the company's website at www.motient.com. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and : This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the strategy of Motient, its plans, and the transactions described in this press release. Such statements generally include words such as could, can, anticipate, believe, expect, seek, pursue, proposed, potential and similar words and terms in connection with futures results, including the transactions described in this press release. Such forward-looking statements are subject to the following uncertainties: the ability of the parties to obtain the necessary regulatory approvals, including without limitation, actions by the Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. , and other factors impacting the parties ability to consummate the transactions and realize the cost savings discussed. We assume no obligation to update or supplement such forward-looking statements. |
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