Monitor the proposed judgment to be submitted within 14 days for the exact dollar amounts. The mixed ruling reduces uncertainty around the post-closing adjustment but does not resolve the final purchase price — the net impact is small relative to the $1.958B deal size. No appeal is indicated yet; if either party appeals, the ruling remains interlocutory and the case continues.
Price Chart
Executive Summary
The Delaware Court of Chancery issued a mixed summary judgment ruling in Viasat's post-closing purchase price dispute with L3Harris over the $1.958B acquisition of Viasat's Link-16 tactical data links business. Viasat won on Disputed Item 1 (~$10.6M EAC adjustment), where the court held Grant Thornton exceeded its mandate by applying GAAP after finding Viasat complied with the Reference Statement's Tier 1 prohibition. L3Harris won on Disputed Items 2 and 3 (~$794,552 E&O reserve and ~$3.79M WIP 'bone pile' reserve), where the court found the Reference Statement lacked substantive constraints, so Grant Thornton properly applied GAAP. The net financial impact is modest relative to the $1.958B deal — Viasat's win on Item 1 is partially offset by losses on Items 2 and 3 — and the ruling is interlocutory (summary judgment, not final judgment), with a proposed judgment to be submitted within 14 days.
Court Ruling Details
Key Facts
- L3Harris acquired Viasat's Link-16 Tactical Data Links business for $1.958 billion, closing January 3, 2023.
- Post-closing working capital adjustment dispute: Viasat estimated Closing Working Capital at $154.354M; L3Harris calculated $57.78M repayment.
- Grant Thornton, as accounting expert, resolved 8 of 10 disputed items in L3Harris's favor and 2 largely in Viasat's favor.
- Court ruled Grant Thornton exceeded its mandate on Disputed Item 1 (~$10.6M EAC adjustment) by applying GAAP after Viasat complied with Tier 1 Reference Statement prohibition.
- Court upheld Grant Thornton on Disputed Item 2 (~$794,552 E&O reserve) and Disputed Item 3 (~$3.79M WIP 'bone pile' reserve), finding Reference Statement lacked substantive constraints, so GAAP properly applied.
- Parties directed to submit proposed form of judgment within 14 days.
- Ruling is summary judgment (interlocutory), not final judgment — no damages awarded.
Financial Impact
Viasat wins ~$10.6M on Item 1 but loses ~$794,552 on Item 2 and ~$3.79M on Item 3 — net positive of roughly $6M, but this is a working capital adjustment within a $1.958B deal, not a standalone damages award.
Risk Factors
- Either party may appeal the summary judgment ruling, prolonging the dispute.
- The final judgment may include additional costs or interest not yet quantified.
- The ruling does not affect Viasat's core satellite broadband business — it is limited to a divested business unit's purchase price adjustment.
Investment Themes
Documents Analyzed
This report is based on 1 court opinion.
| Document | Accession Number |
|---|---|
| COURT-RULING Data (Synthetic) | court-d8f9cce33c-VSAT |
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Oct 9, 2026 17d ago | 144 | $67.66 | awaiting T+60 | — | $72.19 (+6.70%) |
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