Bloomberg: Mudrick Seeks to Bar Globalstar Executives From Running Company
(Bloomberg) -- Hedge fund Mudrick Capital Management says executives and board members of satellite-phone provider Globalstar Inc. are "faithless fiduciaries" who wasted millions of dollars on a plan to enrich themselves, according to a lawsuit that was made public Friday after being filed under seal on Wednesday
The suit seeks to bar Globalstar’s management and board from ever again serving as a director or officer of a Delaware corporation
"The story of Globalstar is marked by secret machinations, deceit, and overreaching by the Company’s controlling stockholder, Jay Monroe, and a complete abrogation of fiduciary duties by the Company’s management and Board of Directors," Mudrick Capital says in filing
A Globalstar representative didn’t respond to a request for comment
The suit focuses on an attempt by Globalstar Executive Chairman James Monroe III to acquire another company and assets he controls. The $1.65b deal was canceled last month after opposition from Mudrick, the company’s largest outside shareholder
Mudrick Capital says Monroe bribed the special committee that approved the planned merger with restricted stock worth about $1.5 million per board member; suit names Globalstar, Monroe, other company executives and board members as defendants
The case is Mudrick Capital Management v. James Monroe III, No. 2018-0699, Delaware Chancery Court (Wilmington)
