Dish Network 2000 Annual Report Download - page 29

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Satellite Dealers Supply, Inc. filed a lawsuit on September 25, 2000, on behalf of itself and a class of
persons similarly situated. The plaintiff is attempting to certify a nationwide class allegedly brought on behalf of
sellers, installers, and servicers of equipment used to provide satellite, who contract with the us and claims the
alleged class has been “subject to improper chargebacks.” The plaintiff alleges that (1) we charged back certain fees
paid by members of the class to professional installers in violation of contractual terms; (2) we manipulated the
accounts of subscribers to deny payments to class members; and (3) we misrepresented to class members who owns
certain equipment related to the provision of satellite television services. The plaintiff is requesting a permanent
injunction and monetary damages. We intend to vigorously defend the lawsuit and to assert a variety of
counterclaims. It is too early to make an assessment of the probable outcome of the litigation or to determine the
extent of any potential liability or damages.
We are subject to various other legal proceedings and claims which arise in the ordinary course of business.
In the opinion of management, the amount of ultimate liability with respect to those actions will not materially affect
our financial position or results of operations.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No items were submitted to a vote of security holders during the fourth quarter of 2000.
PART II
Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS
Our Class A common stock is quoted on the Nasdaq Stock Market under the symbol “DISH.” The sale prices
reflect inter-dealer quotations and do not include retail markups, markdowns, or commissions. The high and low
closing sale prices of the Class A common stock during 1999 and 2000 on the Nasdaq Stock Market (as reported by
Nasdaq) are set forth below. On each of July 19, 1999, October 25, 1999 and March 22, 2000, we completed a two-
for-one split of our outstanding common stock. All references to share and per share amounts included below
retroactively give effect to the stock splits competed in July 1999, October 1999 and March 2000.
1999 High Low
First Quarter....................................................................... $ 10.203 $ 5.750
Second Quarter................................................................... 19.773 10.063
Third Quarter ..................................................................... 24.250 14.188
Fourth Quarter.................................................................... 48.750 22.484
2000
First Quarter....................................................................... $ 79.000 $ 40.719
Second Quarter................................................................... 74.188 31.188
Third Quarter ..................................................................... 53.422 31.625
Fourth Quarter.................................................................... 54.125 22.750
As of March 8, 2001, there were approximately 3,659 holders of record of our Class A common stock, not
including stockholders who beneficially own Class A common stock held in nominee or street name. As of
March 8, 2001, all 238,435,208 outstanding shares of our Class B common stock were held by Charles W. Ergen, our
Chief Executive Officer. There is currently no trading market for our Class B common stock.
We have never declared or paid any cash dividends on any class of our common stock and do not expect to
declare dividends on our common stock in the foreseeable future. Payment of any future dividends will depend upon
our earnings and capital requirements, restrictions in our debt facilities, and other factors the Board of Directors
considers appropriate. We currently intend to retain our earnings, if any, to support future growth and expansion.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and
Capital Resources.”