Commitment and Contingencies |
3 Months Ended |
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Mar. 31, 2024 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies |
14. Commitments and Contingencies
From time to time, the Company may become involved in various claims and legal proceedings arising in the ordinary course of business, which, by their nature, are inherently unpredictable. Regardless of outcome, litigation and other legal proceedings can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors.
On May 7, 2024, a putative class action lawsuit relating to the Merger of Legacy BlackSky on September 9, 2021 with a wholly owned subsidiary of Osprey was filed. The lawsuit is captioned Drulias v. Osprey Sponsor II, LLC, et al. (“Drulias”) (Del. Ch. 2024). The Drulias complaint asserts breach of fiduciary duty and unjust enrichment claims against the former directors of Osprey (the “Osprey Board”); the former officers of Osprey; and Osprey Sponsor II, LLC (the “Sponsor”); and aiding and abetting breach of fiduciary duty claims against HEPCO Capital Management, LLC; JANA Partners LLC; and Brian O’Toole. The Drulias complaint seeks, among other things, damages and attorneys’ fees and costs. The terms of the Merger required the Company to indemnify the directors of Osprey. The Company is still in the process of evaluating the merits of the complaint and potential outcomes.
On May 8, 2024, a putative class action lawsuit relating to the Merger was filed in the Delaware Court of Chancery. The lawsuit is captioned Cheriyala v. Osprey Sponsor II, LLC (“Cheriyala”) (Del. Ch. 2024). The Cheriyala complaint asserts breach of fiduciary duty against the former directors of the Osprey Board, the former officers of Osprey, and the Sponsor; aiding and abetting breach of fiduciary duty claims against Blacksky Holdings, Inc., O’Toole and Brian Daum; and unjust enrichment claims against the Sponsor and Jonathan Cohen. The Cheriyala complaint seeks, among other things, damages and attorneys’ fees and costs. The Company is still in the process of evaluating the merits of the Cheriyala complaint and potential outcomes.
Though the Company is not named in either suit, it expects to have certain indemnification requirements of directors, officers and former directors and officers.
Other Commitments
During 2023, the Company entered into a new operating lease for office space with a commencement date in January 2024 and an expiration date in August 2036. The Company recognized an operating lease right-of-use asset and a long-term operating lease liability of $3.7 million in its unaudited condensed consolidated balance sheets during the three months ended March 31, 2024.
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