| Company: | Globalstar, Inc. |
| Ticker Symbol: | NASD: GSAT |
| Class Period: | November 2, 2006 to February 5, 2007 |
| Date Filed: | Feb-12-07 |
| Lead Plaintiff Deadline: | Apr-10-07 |
| Court: | Southern District, NY |
| Allegations: |
A class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Globalstar, Inc. ("Globalstar" or the "Company") (NASDAQ:GSAT) who purchased the common stock of Globalstar pursuant and/or traceable to the Company's initial public offering on or about November 2, 2006 through February 5, 2007, seeking to pursue remedies under the Securities Act of 1933 (the "Securities Act"). This action concerns the initial public offering of Globalstar common stock which took place on or about November 2, 2006 (the "IPO" or the "Offering").
The complaint charges Globalstar and certain of its officers and directors with violations of the Securities Act. Globalstar offers satellite communications services. The Company provides mobile and fixed voice and data services, asset tracking and monitoring services, high-speed Internet access, video and audio broadcasting, and remote file transfer and virtual private networking services.
As alleged in the Complaint, on or about November 2, 2006, the Prospectus (the "Prospectus") with respect to the IPO, which forms part of the Registration Statement, became effective and, at least, 7.5 million shares of Globalstar's common stock were sold to the public, thereby raising more than $127 million. The Prospectus failed to disclose that Globalstar's constellation of satellites was degrading at an increasingly fast rate and the length of their commercial viability was decreasing. Then, on February 5, 2007, Globalstar filed a Form 8-K with the Securities and Exchange Commission disclosing several material events. Among other things, the Company disclosed that it has received updated information concerning its constellation of satellites and that the satellites' rate of degradation had accelerated. In response to the announcement about the Company's satellites, on February 6, 2007, the price of Globalstar stock declined precipitously falling from $14.48 per share to $10.40 per share - approximately 39% below the IPO price - on extremely heavy trading volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges Globalstar and certain of its officers and directors with violations of the Securities Act. Globalstar offers satellite communications services. The Company provides mobile and fixed voice and data services, asset tracking and monitoring services, high-speed Internet access, video and audio broadcasting, and remote file transfer and virtual private networking services.
As alleged in the Complaint, on or about November 2, 2006, the Prospectus (the "Prospectus") with respect to the IPO, which forms part of the Registration Statement, became effective and, at least, 7.5 million shares of Globalstar's common stock were sold to the public, thereby raising more than $127 million. The Prospectus failed to disclose that Globalstar's constellation of satellites was degrading at an increasingly fast rate and the length of their commercial viability was decreasing. Then, on February 5, 2007, Globalstar filed a Form 8-K with the Securities and Exchange Commission disclosing several material events. Among other things, the Company disclosed that it has received updated information concerning its constellation of satellites and that the satellites' rate of degradation had accelerated. In response to the announcement about the Company's satellites, on February 6, 2007, the price of Globalstar stock declined precipitously falling from $14.48 per share to $10.40 per share - approximately 39% below the IPO price - on extremely heavy trading volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
