HARTFORD, Conn., May 10, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of Florida on behalf of all persons who purchased or otherwise acquired the securities of GlobeTel Communications Corp. ("GlobeTel" or the "Company") (AMEX:GTE) between December 22, 2005 through April 11, 2006, inclusive, (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants made false and misleading statements regarding the Company's $600 million deal with Moscow-based LLC Internafta to provide internet services in Russia. Throughout the Class Period, defendants emphasized a joint venture agreement to install wireless networks throughout Russia, valued at approximately $600 million. Based on the news that GlobeTel had signed a lucrative agreement which would generate significant revenues, the stock rose dramatically.
An April 11, 2006 article published by The Motley Fool questioned the credibility of the entire deal. On April 11, 2006, after the truth about the joint venture was exposed, the stock dropped 15%, trading at only $1.78. During the Class Period, GlobeTel traded as high as $3.92 per share.
If you are a member of the class, you may, no later than June 27, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.