A large investor in Leap Wireless Intl. filed a lawsuit in State Court against directors of Leap Wireless alleging breaches of fiduciary by adopting the advance notice bylaw and by refusing to waive compliance with its compensation disclosure requirements.
According to the complaint the plaintiff alleges that defendants breached their fiduary duty owed to investors of Leap Wireless International, Inc. (NASDAQ:LEAP). Specifically the plaintiff claims that Leap's adoption and enforcement of an advance notice bylaw contains an onerous, one-sided disclosure requirement designed to impede stockholder nominations and thereby entrench the incumbent directors of Leap.
The plaintiff said that Leap Wireless Intl's advance notice bylaw requires disclosure of compensation paid by the nominating stockholder to the stockholder nominee, or paid by the nominating stockholder to anyone affiliated with the stockholder nominee.

However on the other side, so the plaintiff, board nominees affiliated with other Leap Wireless Intl. stockholders are not obligated to disclose compensation they receive from those Leap Wireless stockholders.

Leap Wireless International’s performance has been declining over the past years. While Leap Wireless Intl, Inc. (NASDAQ:LEAP) was able to increase its annual Total Revenue from $1.63billion in 2007 to $2.697billion in 2010, its Net Loss rose from $80.30million in 2007 to $87.95million.
Additionally, even though it’s first quarter Revenue in 2011 rose from its 2010 first quarter revenue of $683.76million to $779.91million, its first quarter Net Loss rose from $68.03million to $96.21million.

Furthermore, even though shares of Leap Wireless International, Inc. (Public, NASDAQ:LEAP) traded during 2010 as low as $9.83 per share in August 2010 and increased to $17.20 per share on May 10, 2011, LEAP stock is trading still far below high trading prices in 07, 08, and 09.