Gilat Accused of Rushing Comtech Deal Despite Coronavirus Delays

Comtech Telecommunications Corp. sued Gilat Satellite Networks Ltd. in Delaware over their $532 million merger, claiming Gilat is counterproductively pressuring Russian regulators to rubber-stamp the deal before delays caused by the coronavirus give Comtech a reason to scuttle it.

“With its financial results continuing to deteriorate, Gilat ignored Comtech’s requests not to make a mockery of the Russian approval process,” the Chancery Court complaint says, citing “the risk that pursuing this interference strategy places on the potential destruction of any goodwill.”

The suit accuses Gilat—an Israeli telecom focused on in-flight connectivity that has a significant Russian presence—of jeopardizing not just ...