Walleye Alleges ‘Actionable Insider Trading’ in Intelsat Appeal, It Tells 9th Circuit

Lead plaintiff Walleye Group alleges five Intelsat defendants, including former Chairman David McGlade and several major shareholders, “committed actionable insider trading,” said its mediation questionnaire Wednesday (docket 23-15822) in the 9th U.S. Circuit Court of Appeals. Walleye is seeking reversal of the district court’s April 26 dismissal of its second amended complaint. Its opening brief is due Aug. 2 (see 2305310058). Walleye alleges the defendants sold more than $245 million of Intelsat stock the evening after they learned the FCC was going to reject Intelsat's “bet-the-company plan” for a private auction of satellite spectrum, which Intelsat previously believed the FCC would support, said the questionnaire. Intelsat’s shares “collapsed” 70% when the public found out about the FCC’s rejection, it said.