Globalstar has been hit with class action lawsuit in U.S. Dist. C...
Globalstar has been hit with class action lawsuit in U.S. Dist. Court, Manhattan, by law firm that alleges satellite telephone company provided materially false and misleading information about its financial condition and future growth potential. As result, Cauley, Geller,…
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Bowman & Coates said, Globalstar stock traded at artificially inflated prices. Specifically, complaint alleges that Globalstar misrepresented that its plan to roll out satellite telephone network was on schedule and that demand for system was strong and in line with expectations when in fact company was experiencing significant delays in obtaining approval for system from European regulators, which was negatively affecting sales. Suit also charged that system was subpar because it failed to offer roaming service, making it uncompetitive in developed nations, and that company “repeatedly made false claims about demands for products.”