Globalstar, Inc. - Securities Class Action

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Stanford Law School

Globalstar, Inc. Summary: On October 29, 2008, a notice of appeal was filed by the Plaintiffs to the United States Court of Appeals for the Second Circuit.

The related order dated, September 30, 2008, cited the dismissal based on was warranted on the basis of Rules 9(b) and l2(b) (6). Subsequently, granting the Defendants' motions to dismiss.

According to a press release dated October 02, 2008, Globalstar, Inc. (GSAT) announced that a consolidated securities class action lawsuit against the Company and certain of its officers, stemming from the Company's initial public offering, was dismissed with prejudice by the United States District Court for the Southern District of New York.

On November 06, 2007, a stipulation and Order in regards to setting up a deadline for the lead plaintiff to file its consolidated complaint as well as for the defendant’s response was entered. Just as quickly, a Consolidated Second Amended Complaint was filed on December 05, 2007. However, a motion to dismiss the Consolidated Second Amended Complaint was filed on February 15, 2008. At the same time, a joint motion to dismiss Plaintiff’s Securities Class Action Consolidated Second Amended Complaint was filed. In addition, a notice of motion in reply to the above mentioned motion to dismiss was also filed. Lastly, an Order for plaintiffs’ request for a pre-motion conference on their motion to transfer is denied without prejudice, which was entered on May 20, 2008.

Three related cases have been consolidated under the name Ladmen Partners, Inc. v. Globalstar, Inc. et al Case No: 07-CV-0976-LAP. On May 10, 2007, the Connecticut Laborer’s Pension Fund was appointed Lead Plaintiff and Schoengold, Sporn, Laitman & Lometti was approved as Lead Counsel. On August 15, 2007, a Class Action Consolidated Amended Complaint was filed.

The original 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.

Specifically, the Complaint alleges that 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.

The complaint further alleges that on or around 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.

On September 11, 2009, an order was granted permitting parties to file settlement papers that: The parties may file the Stipulation and the accompanying exhibits with the Court.

On September 18, 2009, an order preliminarily approving settlement and approving the form and manner of notice was entered into the court. Additionally, an order granting Class counsel's application(s) for fees and expenses pursuant to Section 5 of the Stipulation and Agreement of Settlement was also entered.

On May 07, 2012, an Order of Distribution was issued in connection with the settlement in this case.

INDUSTRY CLASSIFICATION:
SIC Code: 4899
Sector: Services
Industry: Communications Services

COMPANY/ISSUER NAME:	Globalstar, Inc.
COMPANY/ISSUER TICKER:	GSAT
COMPANY WEBSITE:	http://www.globalstar.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Ladmen Partners, Inc., et al. v. Globalstar, Inc., et al.

COURT: S.D. New York	DOCKET NUMBER: 07-CV-00976
JUDGE NAME: Hon. Loretta A. Preska
DATE FILED: 02/09/2007	SOURCE: Notice of Filing
CLASS PERIOD START: 11/02/2006	CLASS PERIOD END: 02/05/2007
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Abraham, Fruchter & Twersky (New York, One Pennsylvania Plaza) One Pennsylvania Plaza, Suite 1910, New York, NY, 10119 (voice) 212.279.5050, (fax) 212.279.3655, JFruchter@FruchterTwersky.com Bernstein Liebhard & Lifshitz, LLP (New York) 10 E. 40th Street, 22nd Floor, New York, NY, 10016 (voice) 800.217.1522, (fax) , info@bernlieb.com Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville) 58 South Service Road, Suite 200, Melville, NY, 11747 (voice) 631.367.7100, (fax) 631.367.1173, Schiffrin Barroway Topaz & Kessler, LLP (Walnut Creek) 2125 Oak Grove Road, Suite 120, Walnut Creek, CA, 94598 (voice) 925.945.0200, (fax) 925.945.8792, info@sbtklaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 4

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violations of Federal Securities Laws
Type: Complaint		Date on the document: 02/09/2007
Order
Type: Order		Date on the document: 05/10/2007

REFERENCE COMPLAINT

In Re: Globalstar, Inc. Securities Litigation

COURT: S.D. New York	DOCKET NUMBER: 07-CV-00976
JUDGE NAME:
DATE FILED: 12/05/2007	SOURCE: Docket
CLASS PERIOD START: 11/02/2006	CLASS PERIOD END: 02/04/2007
TYPE OF COMPLAINT: Second Amended and Consolidated
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Gold Bennett Cera & Sidener LLP 595 Market Street, Suite 2300, San Francisco, CA, 94105-2835 (voice) 800.778.1822, (fax) 415.777.5189, info@gbcsf.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
Securities Class Action Consolidated Amended Complaint
Type: Complaint		Date on the document: 08/15/2007
Stipulation And Order
Type: Order		Date on the document: 11/6/2007
Securities Class Action Consolidated Second Amended Complaint
Type: Complaint		Date on the document: 12/5/2007
Defendants Globalstar, Inc., James Monroe III, And Fuad Ahmad's Joint Motion To Dismiss Plaintiff's Securities Class Action Consolidated Second Amended Complaint
Type: Complaint		Date on the document: 2/15/2008
Notice Of Motion By Defendants Globalstar, Inc., James Monroe III, And Fuad Ahmad To Dismiss The Securities Class Action Consolidated Second Amended Complaint Under Rules 4(M), 9(B), 12(B)(5), And 12(B)(6)
Type: Notice		Date on the document: 2/15/2008
Notice Of Motion By Defendants Wachovia Capital Markets, LLC, JP Morgan Securities, Inc., And Jefferies & Company, Inc. To Dismiss The Consolidated Second Amended Complaint Under Rules 4(M), 9(B) And 12(B)(6)
Type: Notice		Date on the document: 2/15/2008
Order
Type: Order		Date on the document: 5/20/2008
Opinion
Type: Order		Date on the document: 09/30/2008
Notice Of Appeal
Type: Notice		Date on the document: 10/29/2008
US District Court Civil Docket
Type: Docket		Date on the document: 10/29/2008
Stipulation Withdrawing Appeal
Type: Other		Date on the document: 08/14/2009
Order Permitting Parties To File Settlement Papers
Type: Order		Date on the document: 09/11/2009
Order
Type: Order		Date on the document: 09/18/2009
Order Preliminarily Approving Settlement And Approving The Form And Manner Of Notice
Type: Order		Date on the document: 09/18/2009
U.S. District Court Civil Docket
Type: Docket		Date on the document: 12/11/2009
Order of Distribution
Type: Order		Date on the document: 05/08/2012

OTHER DOCUMENTS
Class Action Complaint - Jury Trial Demanded
Case Name and/or Number: Margueritte Sherrard, et al. v. Globalstar, Inc., et al.
Type: Complaint		Date on the document: 02/21/2007

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