StarBand sues EchoStar
By Paige Albiniak -- Broadcasting & Cable, 5/24/2002 10:45:00 AM MT
Satellite company StarBand Communications is suing its largest investor, EchoStar Communications Corp., alleging that EchoStar owes it millions in revenue for illegally billing customers and collecting revenue.
The suit asks the U.S. District Court for the Eastern District of Virginia to enjoin EchoStar from further acting as StarBand's billing agent, and to pay StarBand the fees plus damages.
"The lawsuit against EchoStar is unfortunate but also unavoidable," said StarBand President David Trachtenberg. "As a growing business, we couldn't financially wait any longer to receive payments for the services we provide."
EchoStar and StarBand have a troubled history; EchoStar pulled out of its $100 million investment in the company.
EchoStar Chairman and Chief Executive Officer Charlie Ergen and three other EchoStar executives also recently resigned from StarBand's board.
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