According to a press release dated February 7, 2008, GlobeTel Communications Corp. announced that the U.S. District Court for the Southern District of Florida has granted final approval of the previously disclosed settlements reached in a securities class action pending against the Company, and a shareholder derivative action filed against certain of its current and former directors and officers (docket numbers 06-21071 and 06-60923). As a result of these approvals, all claims in these two lawsuits have been fully settled and dismissed with prejudice by the court.
In an article dated November 20, 2007, GlobeTel Communications Corp. announced on Tuesday that it has preliminary approval for a $2.3 million settlement of a securities fraud class action and for a settlement of a derivative shareholder action against several of its officers. Both settlements were submitted on Oct. 26 and received preliminary approval on Nov. 1. They are still awaiting final approval.
On August 4, 2006, the Court entered the Order signed by U.S. District Judge Cecilia M. Altonaga granting the motion to appoint lead plaintiffs and to approve the selection of co-lead and liaison counsel. Further, the Court granted the motion to consolidate the pending similar actions. On October 2, 2006, the plaintiffs filed a Consolidated Amended Class Action Complaint. On October 30, 2006, the plaintiffs filed a Consolidated Amended Class Action Complaint. Defendants filed motions for dismissal and motions for hearing on the dismissal motions on December 20, 2006. On April 4, 2007 the judge granted certain motions by the individuals to be dismissed but provided leave to the plaintiffs to file a second amended complaint to fix the original's deficiencies. Choosing not to pursue claims against the dismissed individuals, parties went into discovery mediation. On October 26, 2007 the plaintiff submitted a notice of settlement and an agreed motion for preliminary approval of settlement. The gross settlement fund is in the amount of $2.3 million.
The original complaint alleges that defendants issued several statements during the Class Period which touted the consummation of a $600 million deal with a Moscow-based company named LLC Internafta to install wireless networks in Russia's 30 largest cities. The complaint alleges, however, that the Russian deal was a deception.