Labaton Sucharow will move forward with a proposed class action against inflight entertainment company Gogo, Inc. ("Gogo"), after Judge Jorge L. Alonso denied a motion to dismiss the case on April 26, 2021. The action alleges that Gogo executives made false and misleading public statements about malfunctions in its “2Ku” in-flight antenna-and-satellite Wi-Fi system when planes were sprayed with de-icing fluid.
Judge Alonso, who had previously dismissed the suit without prejudice in 2019, determined that additional details and interviews from anonymous former employees who worked on the 2Ku Wi-Fi program strengthened the amended suit's securities fraud allegations. Judge Alonso rejected Gogo's argument against the suit's use of anonymous sources, saying the former employees presented convincing, specific information about 2Ku. The judge was also unconvinced by Gogo's argument that it did not know about the artificial inflation of its stock, citing an instance when one of its executives bought $100,000 in company shares.
Learn more about the case here: “Gogo In-Flight Wi-Fi Securities Suit Cleared for Takeoff After Surviving Dismissal,” Law Street