HARTFORD, Conn., Feb. 13, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, 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 New York on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Globalstar, Inc. ("Globalstar" or the "Company") (Nasdaq:GSAT) pursuant and/or traceable to the Company's initial public offering (the "IPO" or the "Offering") on or about November 2, 2006 through February 5, 2007, inclusive, (the "Class Period").
The Complaint alleges that Globalstar, a company that offers satellite communications services, and certain of its officers and directors violated Federal Securities laws by making misrepresentations in the Prospectus (the "Prospectus"), which forms part of the Registration Statement. Specifically, 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.
Then, on 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. On this news, the price of Globalstar stock fell from $14.48 per share to $10.40 per share -- approximately 39% below the IPO price on February 6, 2007.
If you are a member of the class, you may, no later than April 10, 2007, 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 Izard, P.C. 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 Izard, P.C. toll-free at (800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website: www.snlaw.net.