| Company: | Loral Space & Communications, Ltd. |
| Ticker Symbol: | OTC BB: LRLSQ |
| Class Period: | June 30, 2003 to July 15, 2003 |
| Court: | Southern District NY |
| Date Filed: | Sep-17-03 |
| Lead Plaintiff Deadline: | Oct-17-03 |
| Allegations: |
The complaint charges defendant Bernard Schwartz with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that defendant issued materially false and misleading statements which resulted in plaintiff purchasing Loral securities during the Class Period at artificially inflated prices.
On June 30, 2003, the beginning of the Class Period, Loral made two announcements that purportedly would assist in strengthening its balance sheet and its future prospects. Loral announced that "it has collected approximately $55 million from Intelsat representing an acceleration of a receivable for agreed-upon milestone performance payments" and that Loral had resolved all outstanding legal disputes with Alcatel thereby eliminating potential exposure to $350 million in liability to Alcatel.
However, the complaint alleges that the Company failed to disclose that Loral was actively negotiating the sale of six of its satellites with Intelsat and that Intelsat was pressuring Loral to file for Chapter 11 bankruptcy as a condition of closing the deal. Rather than disclose such material information, the announcement and subsequent statements issued by defendant Schwartz left potential investors in Loral with the misleading impression that Loral was "on plan" as discussed in the prior quarter's conference call, that Loral was not only current on its debt payments, but also was not in any danger of default and was focused on preparing for a recovery in its business. What the Company communicated to investors was substantially different than the reality that it was contemplating a Chapter 11 bankruptcy filing.
On July 15, 2003, prior to the market open, and to the horror of recent investors who had purchased Loral securities based on the positive news from the Company, Loral announced that it was filing for Chapter 11 bankruptcy as a precondition to an agreement with Intelsat to sell its six North American satellites for approximately $1.1 billion. Once the stock resumed trading after being halted on the news, the stock lost 90% of its value.
If you acquired the securities of the defendants during the Class Period you may, no later than October 17, 2003, 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.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
