In Re Loral Space & Communications Consolidated Litigation

In this case, plaintiffs alleged that Loral’s October 2006 issuance of convertible preferred stock for $300 million to its largest shareholder, MHR Fund Management LLC, was unfair. David Ross, supported by a team in our Chicago office, testified at trial on behalf of the class action plaintiffs. Vice Chancellor Leo Strine issued a memorandum opinion in favor of plaintiffs, cited Ross’s testimony favorably in his opinion, and ordered as a remedy that MHR exchange the convertible preferred shares (which would have been convertible into at least 14.8 million shares) for 9.5 million shares of Loral non-voting common stock. Our client was successfully represented by Travis Laster of Abrams & Laster LLP.