N.Y. Supreme Court dismisses shareholders' lawsuit against TerreStar

By Lisa Kerner

Charlotte, N.C., Oct. 15 - The Supreme Court of the State of New York, County of New York, Commercial Division dismissed the February 2008 lawsuit filed by Highland Capital Management, LP and its affiliates against TerreStar Corp.

The court also denied Highland's request to amend its complaint in the lawsuit, a TerreStar news release said.

According to TerreStar, Highland alleged that the company breached some provisions in the certificate of designations for the company's series A preferred stock issued in April 2005.

Highland was seeking damages or the redemption of the series A preferreds it purchased.

"We are extremely pleased with the court's dismissal," TerreStar president Jeffrey Epstein said in the release.

"We will move forward from this satisfactory result by continuing to focus all of our resources on building long-term value for all of our shareholders," Epstein added.

In 2007, a Dallas County, Texas court ruled in favor of TerreStar in similar litigation between the company and Highland Capital, it was previously reported.

TerreStar, formerly Motient Corp., is a Lincolnshire, Ill., mobile satellite services company.

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