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After filing for its second bankruptcy proceeding, Ligado Networks filed a lawsuit against Inmarsat alleging a willful breach of contract. #pressrelease
January 8, 2025
Satellite communications company Ligado Networks ("Ligado") today filed a lawsuit against Inmarsat Global Ltd. ("Inmarsat") for Inmarsat's intentional and willful breach of a 2007 Cooperation Agreement (the "Agreement") to facilitate Ligado’s terrestrial operations using contiguous FCC-allocated spectrum blocks.
Under the Agreement, in exchange for significant payments from Ligado, Inmarsat was required to upgrade its own satellite terminals to eliminate potential terminal interference, including near airports and waterways, thus providing Ligado with the ability to offer its ancillary terrestrial component service in all areas of the country. In exchange for Inmarsat's efforts and the rights to use portions of Inmarsat's spectrum bands, Ligado paid Inmarsat over $1.7 billion, including a one-time lump-sum $250 million "transition payment".
The complaint alleges that Inmarsat has failed to honor its obligations under the Agreement by neglecting to upgrade its own satellite terminals, deliver to Ligado portions of Inmarsat's spectrum, and assist Ligado in its efforts to gain permission from the FCC to pursue its goal of providing nationwide terrestrial wireless services to expand America's 5G capabilities.
The complaint seeks a court order requiring Inmarsat to perform its contractual duties, an award of monetary damages to compensate Ligado for Inmarsat's intentional breaches of the Agreement, and an order requiring Inmarsat to repay the billions Ligado paid and lost due to Inmarsat's intentional inaction.
Read the full press release here.
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