Gogo stock drops 27 percent after being hit with lawsuit by American Airlines

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After sustaining a 27 percent drop in its stock price following a lawsuit filed against it by American Airlines, Gogo issued a short filing with the Securities and Exchange Commission on Tuesday.

The statement refers to the fact that late last week, the largest airline in the United States sued Gogo, its provider of on-board Internet, over failure to allow the airline giant to end the two companies’ contract.

According to American’s civil complaint, filed late last week in state court in Tarrant County, Texas, American Airlines is free to choose another provider, but has to give Gogo six months to make a counter offer. If Gogo declines to do so, then American is free to terminate the contract.

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