NEW YORK, Feb. 12, 2007 (PRIME NEWSWIRE) -- Roy Jacobs & Associates announces that a lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of shareholders of Globalstar, Inc. ("Globalstar" or the "Company") (Nasdaq:GSAT) common stock who purchased in the initial public offering ("IPO") or on the open market during the period beginning on or about November 2, 2006 through February 5, 2007 (the "Class Period").
No class has yet been certified in this action. Until a class is certified by the court, you are not personally represented by counsel unless you retain an attorney.
If you purchased shares of Globalstar during the period beginning on or about November 2, 2006 through February 5, 2007, you are urged to contact Roy Jacobs toll-free at 1-888-884-4490 or by email to jacobs@jacobsclasslaw.com to learn about your legal rights and how this action may benefit you. For further information on our firm, please visit www.jacobsclasslaw.com.
The complaint charges Globalstar and certain of its officers and directors with violations of the federal securities laws. On or about November 2, 2006, the Company sold at least 7.5 million shares of Globalstar's common stock to the public in an initial public offering ("IPO"), raising more than $127 million. The Prospectus on the offering failed to disclose that Globalstar's satellite system was degrading at an increasingly fast rate and markedly shortening the term of its commercial viability.
Then, on February 5, 2007, Globalstar revealed that the problems with the satellite system were increasing. In response, on February 6, 2007, the price of Globalstar stock declined sharply falling from $14.48 per share to $10.40 per share -- approximately 39% below the IPO price -- on extremely heavy trading volume.
If you purchased Globalstar stock or other securities during the Class Period, you may qualify to serve as Lead Plaintiff on behalf of the Class, which consists of all persons and entities who purchased Globalstar stock or other securities from November 2, 2006 through February 5, 2007. You are not required to have sold your Globalstar stock or other securities in order to claim damages, or to serve in this role. All motions for appointment as Lead Plaintiff must be filed with the Court by April 10, 2007.
If you purchased Globalstar shares and are interested in discussing your rights free of charge, please contact Roy L. Jacobs. Mr. Jacobs will speak with you personally at no cost or obligation.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca/