PHILADELPHIA, March 12, 2001 (PRIMEZONE) -- The following statement was issued today by the law firm of Spector, Roseman & Kodroff, P.C.:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased the common stock of Globalstar Telecommunications, Ltd. ("Globalstar" or the "Company") (Nasdaq:GSTRF) between December 6, 1999 and October 27, 2000, inclusive (the "Class Period").
The complaint charges defendants, Globalstar, Bernard Schwartz (Chairman) and Loral Space & Communications Ltd., Globalstar's controlling shareholder, with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The Complaint alleges that, during the Class Period, defendants issued false and misleading statements concerning the Company's prospects and financial status as well as the sale of its core products -- satellite telephones. Specifically, it is alleged that defendants failed to disclose that the Company was significantly behind on its internal business plans for the sale of satellite telephones and that the business plan was failing further because European regulators had not yet approved the Company's telephones for sale, preventing sales in one of the Company's principal markets. Moreover, defendants failed to disclose that the Company's phones were unable to provide "roaming" service, rendering them uncompetitive in developed nations, where the bulk of the phones the Company expected to sell were to be sold. In addition, defendants issued several false statements indicating that the Company's business model was not suffering from the same marketing problems experienced by Iridium. Iridium was the Company's primary competitor in the satellite telephone industry and it had fallen into bankruptcy due to problems with its business model and market acceptance. As a result of Defendants' false and misleading statements, the price of Globalstar securities was artificially inflated during the class period.
Plaintiffs seek to recover damages on behalf of all purchasers of Globalstar common stock during the Class Period (the "Class"). The plaintiffs are represented by the law firm of Spector, Roseman & Kodroff, P.C., among others, who have extensive experience in prosecuting investor class actions and financial fraud.
If you are a member of the Class described above, you may, no later April 30, 2001, move the Court to serve as lead plaintiff of the Class, if you so choose. In order 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, please contact plaintiff's counsel Robert M. Roseman toll-free at 888/844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit our website at http://www.spectorandroseman.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca