Comsat Sues Ex-chief For $20 Million-plus

Maryland Watch

April 25, 1997

Bethesda-based Comsat Corp. said yesterday it has sued its former chief executive, Bruce Crockett, alleging a scheme linking him with two companies that proposed a fight for control of Comsat.

Comsat, a global provider of communications services and products, is seeking more than $20 million in damages and injunctive relief from the defendants.

The defendants include Providence Capital Inc., Wyser-Pratte Inc. and unidentified individuals.

Crockett and the other defendants were not available for comment.

Comsat said the individuals were acting on behalf of a larger unidentified group that aimed to generate short-term profits by threatening a proxy contest for control of Comsat.

Comsat said Crockett violated a 1996 termination contract in which he agreed not to disparage, compete with or disclose confidential information about Comsat to third parties.

Comsat said Crockett was forced to resign in July 1996 for the failure of his diversification strategy -- the source of most of the criticism Comsat now faces from shareholders who are threatening the proxy contest.

Pub Date: 4/25/97

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