Item 8.01. Other Events
On March 10, 2009, TerreStar Corporation ("TerreStar") received an opinion,
dated March 6, 2009, from a Texas state court of appeals reversing a summary
judgment in favor of TerreStar in a lawsuit brought by Highland Capital
Management, L.P. and three of its affiliates ("Highland Plaintiffs"). The suit
was one of several brought by the Highland Plaintiffs arising out of their April
2005 purchase of TerreStar's Series A Preferred Stock. The summary judgment,
granted in November of 2007, dismissed all of their claims. The court of
appeals, in reversing the trial court, concluded that fact issues precluded
summary judgment on most of the Highland Plaintiffs' claims. TerreStar intends
to move for rehearing and rehearing en banc, and if unsuccessful before the
court of appeals, to seek reinstatement of the summary judgment by the Supreme
Court of Texas.
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