Buxton Helmsley Issues Letter To EchoStar Directors Regarding Apparent Accounting And Securities Fraud, Apparent Fraudulent Conveyances, And Apparent Breaches Of Fiduciary Duty In Connection With DISH Merger
The Buxton Helmsley Group, Inc. (together with certain of its affiliates, "BHG" or "we"), the New York City-based investment fund manager with financial interests in EchoStar Corporation ("EchoStar" or the "Company") (NASDAQ:SATS), today issued an open letter (the "Letter") to the Company's Board of Directors, largely relating to the Company and its recent merger with DISH Network Corp. ("DISH"). Within the Letter, BHG discusses apparent pre-merger material misstatements of financial position occurring at DISH (apparent, undisclosed asset value depreciation expenses, in apparent violation of GAAP ASC 350/360 and Regulation S-X), and apparent fraudulent conveyances occurring after the Company was privately notified by BHG (on December 27, 2023) as to findings of evidenced net asset insolvency at DISH.
BHG had given the Company an opportunity to privately respond, if it had any substantive defense to these findings, and the Company issued no response.
The Letter issued by BHG to the Company today, in addition to the instances of private correspondence leading up to this Letter, may be found at: https://www.buxtonhelmsley.com/sats/
About Buxton Helmsley: The Buxton Helmsley Group, Inc. is a New York City-based investment advisory firm and fund manager, engaging both active and passive investment strategies across a range of asset classes, with a general focus on opportunities in North America and Europe. The investment approach is based on deep fundamental analysis and risk management, with a focus on ensuring disclosure obligations being upheld under applicable accounting standards and securities laws.
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This press release and the attached public letter (the "Letter") has been published by The Buxton Helmsley Group, Inc. ("BHG"). BHG is a registered investment advisor in the United States (particularly, registered with the State of New York).
This Letter is for informational purposes only and is not an offer or solicitation to buy or sell any investment product. BHG is also not proposing any particular investment proposal, nor a particular investment decision, nor recommending or suggesting an investment strategy, explicitly or implicitly, concerning EchoStar Corporation or DISH Network Corporation (each, an "Issuer", and together, the "Issuers"), and therefore the Letter is not information recommending or suggesting an investment strategy or investment recommendation.
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Our research and this Letter include forward-looking statements, estimates, projections, and opinions prepared with respect to, among other things, certain accounting, legal, and regulatory issues each Issuer faces and the potential impact of those issues on its future business, financial condition and results of operations, as well as more generally, the Issuer's anticipated operating performance, access to capital markets, market conditions, assets, and liabilities. Such statements, estimates, projections and opinions may prove to be substantially inaccurate and are inherently subject to significant risks and uncertainties beyond BHG's (and its affiliates and related parties) control. No representation is made (or warranty given) as to the accuracy, completeness, achievability, or reasonableness of such statements of opinion.
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