FORT LAUDERDALE, Fla., Feb. 7, 2008 (PRIME NEWSWIRE) -- GlobeTel Communications Corp. (Pink Sheets:GTEM) today 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.
These approvals follow the settlements in principle announced on October 29, 2007 and preliminary approval announced on November 20, 2007. As previously disclosed, such settlements allow for a $2.36 million cash payment by GlobeTel's insurance carrier to fund the settlements, together with GlobeTel's agreement to adhere to certain corporate governance policies and practices.
"We continue to focus on building a stronger company for all our shareholders, and settling this securities class action removes a major nuisance from our field of vision. Time and energy devoted to further defense in court would only detract from time and energy spent on growth-enhancing activities," stated Jonathan D. Leinwand, Chief Executive Officer.
About Sanswire Networks and GlobeTel Communications Corp.
GlobeTel Communications Corp. (Pink Sheets: GTEM) develops and provides an integrated suite of terrestrial and aerospace telecommunications products and services, leveraging its advances in VoIP and Wireless Access technologies. Sanswire Networks is focused on the construction of airship platforms capable of carrying payloads that transmit various types of wireless communications and security solutions. For more information, please visit www.globetel.net.
Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "project," "intend," "expect," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including an ongoing formal investigation by the U.S. Securities & Exchange Commission and delayed filings of quarterly results, any of which could cause the Company's previously reported actual results, performance (finance or operating) to change or differ from future results, performance (financing and operating) or achievements, including those expressed or implied by such forward-looking statements. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.