NEW YORK (TheStreet) -- Gogo(GOGO) - Get Report stock is down by 39.52% to $8.40 on heavy trading volume on Tuesday, after American Airlines (AAL) filed a lawsuit against the in-flight Internet service provider.

The Fort Worth, TX-based airline filed a lawsuit in Tarrant County, TX that said the company is considering replacing Gogo with Internet service provider ViaSat (VSAT), the Fort Worth Star-Telegram reports. 

Gogo can provide a competing proposal as part of its contract with American, the company said in an SEC filing on Monday. The company plans to submit a competing proposal to install its new 2Ku satellite technology on American's aircraft, Gogo said in the filing. 

"If American reasonably determines that our proposal is less favorable than the competitor's, American may elect to terminate the contract with respect to the aircraft that are the subject of the notice," the company said. 

So far today, 3.99 million shares of Gogo have traded, versus the company's 30-day average of about 764,000 shares.

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rates this stock as a "sell" with a ratings score of D. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

You can view the full analysis from the report here: GOGO

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