Months After Dish Network Chair Donated to Biden, Company Gets Great News from DOJ
The Justice Department has recently placed a massive $3.3 billion lawsuit against Dish Network on indefinite hold, sparking a flurry of controversy.
This judicial intervention dismissed allegations by Vermont Telephone accusing Dish and several other entities of manipulating regulations set by the Federal Communications Commission to secure wireless communication licenses, as per a report by the New York Post.
This development followed closely after Dish's founder, Charlie Ergen, and his spouse, Candy, contributed over $113,000 towards President Joe Biden's campaign for reelection, with the Federal Election Commission documenting these donations on December 15.
Bennett Ross, representing Vermont Telephone, expressed suspicion over the timing of these events, highlighting it in a communication to the Justice Department. Ross pointed out the Ergens' and Dish's Political Action Committee's substantial donations, totaling more than $5 million to Democratic endeavors from 2008 to 2022, suggesting a potential influence on the case's dismissal.
Ross criticized what he perceives as a biased justice system, favoring the politically influential, especially in light of the upcoming election.
Moreover, Dish benefited from a $50 million contribution from the Biden administration, aimed at expanding 5G coverage, funded by the CHIPS and Science Act. Ross remarked on the exceptional nature of the Justice Department's interference, noting it's a rarity among the thousands of similar actions filed under the False Claims Act since 2018, with less than two percent being dismissed by the DOJ.
Jeff Blum, from Echostar, which recently acquired Dish Network, defended the DOJ's decision to dismiss the "frivolous" fraud claim, emphasizing EchoStar and Ergen's bipartisan support history. He also highlighted EchoStar's achievements in developing the world's largest Open RAN wireless network, contributing to the US's competitive stance against Chinese tech dominance.
A Bloomberg Law report explained that the False Claims Act permits the Justice Department's intervention in cases made in the government's name, allowing it to decide on prosecution efforts.
On March 6, Republican Senator Chuck Grassley of Iowa sought clarity from Attorney General Merrick Garland regarding the Biden administration's involvement in dismissing False Claims Act lawsuits, raising concerns about the impact on whistleblowers ("relators") who have invested considerable time and resources into their cases. Grassley emphasized the act's core aim to enable private citizens to aid the government in combating fraud.