Reuters – A Delaware court late Friday dismissed a lawsuit filed by hedge fund Highland Capital Management LP against Motient Corp. (MNCP.PK: Quote, Profile, Research) directors and other defendants, claiming breach of fiduciary duties and other charges, Motient said on Monday.
The suit, which was brought last August by former Motient director and Highland partner James Dondero, charged that wireless data equipment maker Motient paid excessive compensation to broker Tejas Securities Group Inc. (TEJS.OB: Quote, Profile, Research) and sought the recovery of fees for securities placements.
But in a 22-page decision, the Delaware Chancery Court ruled that Dallas-based Highland failed to produce sufficient evidence for its claims.
The dismissal is the latest development in an acrimonious dispute between Motient and Highland, a $20 billion hedge fund manager that holds 9 million shares in Motient, or 14.4 percent, making it Motient’s biggest shareholder.
