On September 30, 2008, Judge Loretta Preska of the United States District Court for the Southern District of New York dismissed the consolidated securities class action lawsuit against Globalstar, Inc. (GSAT), and certain of its officers related to its initial public offering. The case was dismissed with prejudice by the court.
The court rejected lead plaintiff Connecticut Laborer Pension Fund’s Section 11 claim that the IPO prospectus was misleading because, among other things, it failed to disclose that Globalstar’s constellation of satellites was degrading at an increasingly fast rate and the length of their commercial viability was decreasing.
