Sallie Mae Trial Scheduled for July
Sallie Mae of Reston plans to wait until at least July 14 for a trial over whether it should get a $900 million breakup fee from a group led by the buyout firm J.C. Flowers after a failed acquisition attempt. The trial could be postponed further if the student loan provider pushes for a pretrial ruling on the interpretation of the contract. Sallie Mae sued the investment group Oct. 8 after the group sought to rescind the April sales agreement of $60 per share, citing adverse financial developments. The prospective buyers asked a judge to put off the trial until September or October, saying the exchange of documents and witness depositions could take a while.
Under Armour CEO Sells Class B Shares
Under Armour of Baltimore said chief executive Kevin A. Plank, above, sold 1.5 million shares to diversify his holdings. Plank sold the shares for about $59 each, totaling $88.5 million. He now owns 12.5 million shares of Class B common stock, representing 78 percent of the voting rights, in the company, which makes synthetic, moisture-releasing athletic wear. Class B shares have 10 times the voting power of the publicly traded Class A shares.
Patent Suit Put on Hold
Sprint Nextel of Reston, along with AT&T and Verizon Wireless, won a temporary halt to a patent-infringement lawsuit by NTP until federal officials complete a review of the patents. NTP, a private patent-licensing company, has also sued Palm and T-Mobile over the patents. U.S. District Judge James R. Spencer said the suits against the telecom firms should not proceed until the Patent and Trademark Office finishes its review of the NTP patents. NTP is appealing an initial finding that the patents, covering wireless e-mail transmission and reception, should not have been issued.
Compiled from Associated Press and Bloomberg News reports.