Globalstar Telecommunications Ltd. Charged With Deceiving Shareholders In Federal Shareholder Lawsuit
NEW YORK, NY, Apr 11, 2001 (INTERNET WIRE via COMTEX) -- Investors are pursuing a federal lawsuit that accuses Globalstar Telecommunications Ltd. (Nasdaq: GSTRF chart, msgs) of stock fraud, the law firm of Berman DeValerio & Pease LLP said today.
The class action, filed March 16 in the United States District Court for the Southern District of New York, seeks damages for violations of the federal securities laws. Berman DeValerio & Pease brought the suit on behalf of all investors who acquired Globalstar between December 6, 1999 and July 19, 2000 (the "Class Period").
Berman DeValerio & Pease has represented defrauded investors in class actions for nearly two decades. To review the complaint and learn more about becoming a lead plaintiff, visit our Website at www.bermanesq.com.
The complaint charges Globalstar, three top officers and part owner Loral Space & Communications Ltd. with bloating Globalstar's share price during the Class Period by issuing news releases and declarations that misled the investing public about the company's business prospects. For seven months, Globalstar and Chief Executive Officer Bernard Schwartz repeatedly made "unrealistic and baseless" claims about the growth of Globalstar's subscriber base, the complaint says.
"While reassuring the investing public that the Company was achieving subscriptions consistent with its plan, Globalstar senior management, including Defendant Schwartz, were fully aware of the fact that subscriptions were well below plan and there was no reasonable basis, in fact, to achieve the anticipated levels of subscriptions ...," the complaint maintains.
The market eventually punished the company for its misrepresentations. Its stock price tumbled from a lofty $53 a share to a low of less than $9 during the Class Period. Due to Globalstar's continued failure to meet its business goals, its stock now trades for less than $1 per share.
If you purchased Globalstar common stock between December 6, 1999 and July 19, 2000, you may wish to contact the following attorneys at Berman DeValerio & Pease to discuss your rights and interests:
Davis, Esq. Jeffrey C. Block, Esq. Berman DeValerio & Pease One Liberty Square, Boston, MA 02109 bdplaw@bermanesq.com (800) 516-9926
You may also visit us at our website at www.bermanesq.com.
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than April 30, 2001. You may contact the attorneys at Berman DeValerio & Pease to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. To be a member of the class, however, you need not take any action at this time and you may retain counsel of your own choice. If you decide to seek appointment as lead plaintiff, you may also retain counsel of your choice.
With offices in Boston and San Francisco, Berman DeValerio & Pease LLP has prosecuted shareholder class actions since 1982, recovering more than $1 billion for investors. The firm has acted as lead counsel in numerous lawsuits involving violations of federal securities laws. It has successfully litigated these actions, and has been singled out for its excellence by many courts. The firm prides itself on its responsiveness to shareholders and their needs in each case.
CONTACT: Sara Davis, Esq.
Berman DeValerio & Pease
800-516-9926
Jeffrey C. Block, Esq.
Berman DeValerio & Pease
800-516-9926
Copyright 2001 Internet Wire, All rights reserved.
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