Globalstar Inc. 2

Globalstar Inc. 2

The lawsuit was settled for $1.5 million in cash on August 19, 2009. The following is a summary of the proceedings in this lawsuit: ‘On and after February 9, 2007, three class action lawsuits were filed in the United States District Court for the Southern District of New York: Ladmen Partners Inc. v. Globalstar, Inc., et al., 07-CV-0976; Bollag v. Globalstar, Inc., et al., 07-CV-0997; and Sherrard v. Globalstar, Inc., et al., 07-CV-1307. On May 10, 2007, the Court ordered these lawsuits consolidated for all purposes under the caption Ladmen Partners Inc. v. Globalstar, Inc., et al., 07-CV-0976 and appointed the Connecticut Laborers Pension Fund as Lead Plaintiff and Schoengold & Sporn, P.C. as Lead Counsel. On August 15, 2007, Lead Plaintiff filed its Consolidated Amended Complaint (the Complaint). Pursuant to the Courts protocol, Lead Plaintiff was permitted to file a Second Amended Complaint alleging any new or derivative matter. On December 5, 2007, Lead Plaintiff filed its Second Consolidated Amended Complaint (the Second Amended Complaint”). The Second Amended Complaint was brought on behalf a class (the œClass) of purchasers of Globalstar, Inc. (Globalstar or the Company) common stock pursuant to a $127.5 million initial public offering of 7.5 million shares of Globalstar common stock at $17.00 per share on or about November 3, 2006 (the Offering or the IPO). The Second Amended Complaint alleged that the Registration Statement filed with the Securities and Exchange Commission in connection with the IPO contained materially false and misleading statements and omitted to state material facts in violation of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 (Securities Act), 15 U.S.C. 77l(a)(2) and 77o, respectively. The Complaint named as defendants Globalstar; James Monroe III (Globalstars Chief Executive Officer, Chairman of the Board and Director who signed the Registration Statement); Fuad Ahmad (Globalstars Vice President and Chief Financial Officer who also signed the Registration Statement); and the three co-lead underwriters of the IPO (Wachovia Capital Markets, LLC, J.P. Morgan Securities, Inc. (identified in the Second Amended Complaint as JPMorgan Securities, Inc.) and Jefferies & Company, Inc. (identified in the Second Amended Complaint as Jeffries & Co., Inc.). On September 30, 2008, after full briefing, the Court entered an order dismissing the Second Amended Complaint. On October 29, 2008, the Lead Plaintiff filed a notice of appeal of the dismissal of the Second Amended Complaint. Following the filing of Lead Plaintiffs notice of appeal, while working diligently on the pending appeal, the parties simultaneously engaged in extensive, vigorous, and arms-length settlement discussions and have agreed to settle the within matter for $1,500,000 subject to the approval of the Court.’

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