Case Study

Air Communications & Satellite, Inc. v. EchoStar Satellite Corp.

Air Communications & Satellite, Inc. v. EchoStar Satellite Corp.

In 2007, Echostar Communications Corp. (the Parent) decided to spin off some of its satellite assets to Echostar Corp. and change its name to DISH Network Corp (DISH). Retained by Coblentz, Patch, Duffy & Bass In 2007, Echostar Communications Corp. (the Parent) decided to spin off some of its satellite assets to Echostar Corp. and change its name to DISH Network Corp (DISH). Further, in 2009, DISH paid a cash dividend. In a contract dispute with the Parent predating the spin-off, the plaintiffs claimed that Echostar Corp. should be liable under a doctrine of successor liability. The plaintiffs’ expert opined that the spin-off and the dividend payment were a “conspiracy to defraud Parent’s creditors.” Defense counsel retained Cornerstone Research and a law professor to evaluate these expert

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