The cash deal recovers about 8% of the maximum damages available, the in-flight connectivity company’s investors said in a memo filed in support of their preliminary settlement approval in the U.S. District Court for the Northern District of Illinois.
Investors accuse Gogo of making misleading statements about its then-new antenna-and-satellite-based in-flight Wi-Fi system. Judge Jorge L. Alonso in 2021 rejected a company attempt to have the suit thrown out. Gogo denies any wrongdoing.
The proposed settlement class consists of investors who acquired Gogo common stock, convertible notes, or call options, or wrote put options, from Feb. 27, 2017, through May 4, 2018, and lost money as a result. It excludes those with certain close ties to the company, the memo posted Thursday said.
Co-lead counsel Levi & Korsinsky LLP and Glancy Prongay & Murray LLP plan to ask for up to one third of the settlement fund—nearly $5.8 million—in attorneys’ fees. The firms will also seek no more than $350,000 as reimbursement for their litigation expenses, according to the stipulation of settlement filed Thursday.
Shearman & Sterling LLP and Neal, Gerber & Eisenberg LLP represent Gogo.
The case is Pierrelouis v. Gogo Inc., N.D. Ill., No. 1:18-cv-04473, preliminary settlement approval memo filed 4/14/22.