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.