LOS ANGELES, June 14, 2006 (PRIMEZONE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a Class Action lawsuit in the United States District Court for the Southern District of Florida on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of GlobeTel Communications Corp. ("GlobeTel" or the "Company")(AMEX:GTE) between December 30, 2005 and April 11, 2006, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges GlobeTel and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning GlobeTel's business and prospects caused the Company's stock price to become artificially inflated, inflicting damages on investors. GlobeTel provides an integrated suite of telecommunications products and services, utilizing Stored Value, Voice over Internet Protocol, and wireless access technologies. The Complaint alleges that during the Class Period defendants repeatedly touted a purportedly $600 million joint venture with a Moscow based LLC, Internafta, to install wireless networks and provide Internet service throughout Russia. The Company announced the "binding agreement" in a December 30, 2005 press release. Based on the news, GlobeTel shares surged from $2.19 to $3.68 per share, a more-than-75% increase on extremely heavy trading volume.
The Complaint alleges that almost immediately after the deal's announcement in January 2006, Internafta failed to pay GlobeTel the first $150 million installment required under the joint venture agreement, and then repeatedly missed the agreement's payment deadlines. Finally, on April 11, 2006, an article published in The Motley Fool questioned the credibility of the entire deal. As a result of this news, GlobeTel's stock plunged 15% the next day, on unusually heavy trading volume, to close on April 12, 2006, at $1.78 per share.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than June 27, 2006, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca