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View Full Version : NDS dealt another blow in Canal+/Echostar case...


Dean_M_Love
November 21st, 2002, 11:26 AM
NDS objected to Echostars intervention on the basis that they have no standing since they have not been granted status as such. Echo objected to the standstill, since it would effectively put their motion to intervene on hold as well. NDS also had a motion pending to dismiss Canals amended claim on a variety of basis. Abe Peled even continued to refer to this pending motion when Measat filed their intervention application, again citing "baseless" claims.

Judge Walker has really dealt a blow to NDS, by entering a stay ONLY on the Canal claim, and is ALLOWING Echostar and Measat to argue intervention on January 9th. A BIG blow to NDS was that he TERMINATED their motion to dismiss! Had this motion been successful, it could have precluded everything else, including Echo and Measats intervention (you cannot intervent in a suit that no longer exists). So now, NDS is only allowed to renew this motion to dismiss if the Telepui stock deal fails, and then it must be re-filed and re-scheduled, meaning there is NO way it could be heard before Echo and Measats motion to intervene.

Judging by the language and tone of the ruling, I fully expect the intervention to be allowed, and I also think Judge Walker is getting a very clear picture of NDS' true colours.

I also notice NDS' stock is back in the $5 range today....too bad so sad...:)

Dean_M_Love
November 21st, 2002, 02:25 PM
...stock closed almost 10% down at $5.90...and is down over 25% over the last 10 days....meanwhile the markets are actually going UP while NDS goes down....go figger..couldn't happen to a nicer bunch of guys..

Salty Jizm
November 21st, 2002, 05:24 PM
I hope some NDS executives end up doing some jail time over this. Dean, just shooting from the hip, how likely is this to happen? 50%-50% ???

Dean_M_Love
November 21st, 2002, 05:46 PM
...well of course this thread concerns a civil matter, so jail time isn't an option....

...but of course the Grand Jury is still convened, and I would say that chances are about 75% that Tarnovsky at least will be indicted...now whether or not that spreads to the Execs largely will depend on him...of course right now he is towing the company line and in return they have hired him an attorney and no doubt are telling him he has nothing to worry about...but I would have to imagine that once the indictment gets handed down, and he realizes he is looking at some serious prison time and a permanent criminal record, not to mention I am sure the IRS would at some point like to examine his net worth and all his financial history, what with thousands of dollars in cash showing up at mail drops, well once the seriousness of the situation sets in I would have to imagine that ultimately he will choose to cooperate with the US Attorneys office, and at that point his boss, John Norris and possibly his boss Reuvan Hasak will then become the next targets....how far up the chain will it spread? Thats hard to say, because no doubt there is little paper trail going that high, but will John Norris want to go spend some time in a US prison (with some of the people he happened to put there) or will he too choose to cooperate and then the whole story unfolds...

Much of this is of course speculation, all I can say for a fact is that Tarnovsky DID hack the Echo system, and did so at a time when he worked for NDS.

So my bets are 75% for Tarnovsky, and maybe 25% for anyone higher up the food chain....of course, once he gets indicted, you will see an abrupt about face on behalf of NDS and they will no doubt distance themselves from Tarnovsky and label him a 'rogue' employee and claim they had no knowledge that he was still involved with piracy while working for them.

Salty Jizm
November 21st, 2002, 06:18 PM
Originally posted by Dean_M_Love
...well of course this thread concerns a civil matter, so jail time isn't an option....

Right... But when the fishing gets underway during formal discovery, it maybe too much for the criminal side to ignore! :)



So my bets are 75% for Tarnovsky, and maybe 25% for anyone higher up the food chain....of course, once he gets indicted, you will see an abrupt about face on behalf of NDS and they will no doubt distance themselves from Tarnovsky and label him a 'rogue' employee and claim they had no knowledge that he was still involved with piracy while working for them.

Yeah! I hope you are right! With regard to the 'rogue' employee defense, that gets increasingly difficult the longer they stand by him and supply his defense. If they KNOW he did something criminal, as a public company, they have certain obligations on how they handle things.

But most likely, they will double down and hope to keep the lid on things. I wish things would move faster. I'm getting impatient. I want to see somebody fry for what has happened. Too bad hypocracy isn't a crime, huh?

Dean_M_Love
November 21st, 2002, 06:59 PM
...I think they are very much aware that they have gone past the point of no return, and hiring him a lawyer immediately after $40,100 was discovered by the authorities only raises suspicions about what they actually know....I can't think of any other company taking on an employees personal problems like that, unless they had a vested interest...

Salty Jizm
November 21st, 2002, 07:22 PM
Originally posted by Dean_M_Love
...I think they are very much aware that they have gone past the point of no return, and hiring him a lawyer immediately after $40,100 was discovered by the authorities only raises suspicions about what they actually know....I can't think of any other company taking on an employees personal problems like that, unless they had a vested interest...

And that raises yet another question. What was he thinking? It might be possible to leak some code to a pirate web site but did he cut some deal with the pirates so he was getting paid from both sides? That would be pretty greedy. (And stupid as it turns out!)

If so, I guess the NDS defense team will ultimately claim Big Gun did this entirely on his own. Big Gun, against thier instructions and his employment agreement, leaked this confidential information in order to line his pockets. They are terribly shocked that this turned out to be true. Maybe that would be enough to defuse the criminal side of things for the execs. I'm giving this an 80% chance of happening! :)

But of course, Big Gun would need to be convinced that alibi makes sense to support (at his expense). And that still does not get NDS off the hook on the civil side. Thier negligence caused great harm, and that will still need to be repaired.

Dean_M_Love
November 21st, 2002, 08:40 PM
...well, of course not only was he in on the cut, he was the developer of the hack as well, splitting it 50/50 with Menard...


...of course, even if NDS tries to play the rogue employee they still have a major civil problem, and negligence is exactly it, how could you be so stupid to allow an ex-pirate to have access to not one, but 2 competitors reverse-engineered cards, done in Haifa....or did he buy his own plane ticket to Haifa and break into the top secret $5,000,000 lab?