#United States #New York #Securities Fraud #Pomerantz Law Firm #EchoStar Corporation

Pomerantz Law Firm's Inquiry into EchoStar Corporation

On July 22, 2025, Pomerantz LLP announced that it is investigating claims from investors of EchoStar Corporation, a company traded under NASDAQ as SATS. The focus of the investigation centers on whether EchoStar, alongside certain officers and directors, has participated in activities involving securities fraud or other unlawful business practices that could impact shareholders.

Background of the Investigation

The investigation follows a series of troubling developments within the company, predominantly sparked by a report from the Wall Street Journal dated May 12, 2025. The article detailed an impending inquiry by the Federal Communications Commission (FCC), which communicated to Charlie Ergen—the chairman and co-founder of EchoStar—that the company’s compliance with federal requirements for establishing a nationwide 5G network, especially for its Boost Mobile subsidiary, would be investigated. This scrutiny came in light of EchoStar's slow progress in constructing a network capable of rivaling telecommunications giants like AT&T, Verizon, and T-Mobile.

As a result of this revelation, EchoStar’s stock price witnessed a significant downturn, plummeting by $4.01 (16.58%) to close at $20.18 per share on the same day. The investors' concerns grew even more serious following EchoStar's May 30 disclosure that it had opted not to make a $326 million cash interest payment on its 10.75% senior spectrum secured notes due in 2029, creating uncertainty about the company’s spectrum rights and its broader business strategy.

This decision further exacerbated investor anxiety, leading the company's stock to fall by an additional $2.44 per share (12.1%), culminating at $17.73 per share on the date of the filing. Such declines prompted discussions about the potential for Chapter 11 bankruptcy, as reported by The Wall Street Journal on June 6, 2025.

Legal Representation for Affected Investors

In light of the serious implications that these events may hold for shareholders, investors who believe they have suffered losses in EchoStar are encouraged to reach out to the Pomerantz Firm. Danielle Peyton can be contacted via email at [email protected] or by phone at 646-581-9980 ext. 7980. Joining this investigation could be pivotal for those concerned about the wellbeing of their investments in the company.

The Legacy of Pomerantz LLP

Pomerantz LLP has established itself as a prominent name in corporate, securities, and antitrust class litigation, with a history of over 80 years in representing investors. Founded by Abraham L. Pomerantz, who is regarded as a leading figure in the class action legal field, the firm has been instrumental in fighting for the rights of those affected by securities fraud and corporate misconduct, achieving numerous multimillion-dollar judgments for their clients.

With a strong presence in New York, Chicago, Los Angeles, London, and Paris, the Pomerantz Law Firm continues its commitment to advocating for victims of corporate malfeasance. This investigation into EchoStar serves as a continued reminder of the vital role legal representation plays in the realm of corporate governance and investor rights.

Investors must remain vigilant and informed, and for those concerned about their position in EchoStar Corporation, seeking legal counsel may provide the necessary support during these uncertain times.