NEW YORK, Dec. 7, 2020 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the board of directors of Loral Space & Communications Inc. ("Loral" or the "Company") (NASDAQ: LORL) in connection with the proposed interested-party combination of the Company and Telesat Canada ("Telesat") into a new Canadian public company ("New Telesat"). Under the terms of the transaction agreement, the Company's stockholders, at their election, will receive common shares of New Telesat or limited partnership units of a Canadian partnership ("Telesat Partnership") for each share of Loral common stock that they own. Loral stockholders not affiliated with the funds managed by MHR Fund Management LLC ("MHR") will beneficially own 26.1% of the economic interests in New Telesat, with MHR, Public Sector Pension Investment Board ("PSP") and management shareholders of Telesat beneficially owning the remaining 36.6%, 36.7% and 0.7%, respectively, of New Telesat.
If you own LORL shares and wish to discuss this investigation or have any questions concerning this notice or your rights or interests, visit our website:
Or please contact: Joshua Rubin, Esq. WeissLaw LLP 1500 Broadway, 16th Floor New York, NY 10036 (212) 682-3025 (888) 593-4771 [email protected]
WeissLaw is investigating whether (i) Loral's board of directors abused its corporate power by adopting a shareholder rights plan (also known as a "poison pill") that will be triggered if any person or entity (other than MHR) acquires or announces the intention to acquire shares of Loral voting common stock such that after the acquisition that person or entity would own more than 15% of Loral's shares not owned by MHR, PSP or other transaction participants; (ii) the special committee of Loral's board was truly independent and acted to maximize shareholder value in agreeing to the proposed transaction, (iii) the special committee was fully informed as to the valuation of the proposed transaction, (iv) certain cash payments Loral and Telesat will make to PSP are fair to Loral's shareholders, and (v) all information regarding the sales process and valuation of the transaction will be fully and fairly disclosed. These issues are of particular concern given the influence and control MHR and PSP wield over Loral by virtue of their ownership of a majority of the Company's outstanding shares, and possibility the proposed transaction is designed to primarily benefit MHR and PSP and not Loral shareholders.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at [email protected]