Robbins Umeda LLP Is Investigating Hughes Communications, Inc. Acquisition for Shareholders
Robbins Umeda LLP, a shareholder rights litigation firm, is investigating possible breaches of fiduciary duty and other violations of state law by members of the board of directors of Hughes Communications, Inc. (NASDAQ: HUGH) in connection with their efforts to sell the company to EchoStar Corp. (NASDAQ: SATS).
On February 14, 2011, Hughes Communications and EchoStar announced a merger agreement under which under which EchoStar will acquire all of the outstanding equity of Hughes Communications and its subsidiaries. Under the terms of the current agreement, Hughes Communications shareholders will receive $60.70 per share in cash for each share of Hughes Communications common stock. The merger is expected to close later this year.
The investigation seeks to determine whether Hughes Communications’ board of directors undertook a fair process to obtain maximum value for its shareholders. On November 3, 2010, Hughes Communications reported strong third quarter 2010 results, well above forecasts. It reported $266.28 million in sales compared to analyst consensus of $258.50 million and $0.45 in diluted earnings per share compared to consensus of $0.20. Recently, two different analysts set prices targets for Hughes Communications above EchoStar’s offer. Additionally, on February 10, 2011, Hughes Communications traded as high as $63.26 in intraday trading.
If you own stock in Hughes Communications and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at firstname.lastname@example.org.