WEST PALM BEACH, FL (HEDGECO.NET) – The Delaware Court of Chancery has dismissed a lawsuit brought by one of Highland Capital Management’s hedge funds seeking to force Motient to turn over its books and records for Highland’s inspection.

Highland’s Select Equity Fund filed the lawsuit under section 220 of the Delaware Corporate Code, the Court found that Highland had “reasonable grounds to suspect corporate misconduct” by Motient’s management, but dismissed the request for Motient’s records. Highland has filed an appeal.

In a statement to the press Highland said, “As major shareholders, we have a right to the requested information….and if Motient’s current management were truly acting in the stockholders’ best interests, it would not need to take extraordinary steps to block stockholders’ access to information about Motient’s affairs.”

Motient’s General Counsel, Robert Macklin, said in a statment from Motient, “Highland has filed multiple lawsuits against Motient and is trying to force Motient to repurchase a major part of its ownership interest at a price that would represent a direct transfer of value from all of Motient’s other stockholders to Highland.”

Motient is the controlling shareholder of TerreStar Networks Inc., a minority shareholder of Mobile Satellite Ventures LP. TerreStar and MSV are both in the process of developing wireless service by integrating land-based towers and satellites.

Highland Capital Management, L.P. is an SEC-registered investment adviser based in Dallas, with offices in New York and London. They specialise in credit and alternativeinvestment investing. Highland Capital currently manages over $25 billion in leveraged loans, high yield bonds, structured products and other assets for banks, insurance companies, pension plans,foundations, and high net worth individuals.

Alex Akesson
Contributing Writer
HedgeCo.Net
Email: Editor@hedgeco.net

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