SiliconBeat

MessageGlobalstar, the Milpitas company that bills itself as the world’s largest provider of mobile satellite voice and data services, won a legal victory Tuesday in a consolidated class action lawsuit over allegations that it misled investors in its November 2006 initial public offering with a registration filing that “contained material misstatements and omissions”.

The action, filed in the U.S. District Court for the Southern District of New York, was “dismissed with prejudice,” meaning it can’t be refiled, although the plaintiffs in the action have 30 days in which to appeal the decision, according to a two-paragraph press release issued by Globalstar Thursday.

The lead plaintiff, Connecticut Laborers’ Pension Fund, charged the company, its chief executive and chief financial officers and the underwriters of the IPO, Wachovia, JPMorgan, and Jefferies & Co., with misleading investors, citing a drop in the trading price of the company’s stock that followed Globalstar’s filing of an 8-K on Feb. 5 2007 (within months of its IPO) that included information, which Globalstar it had previously disclosed, that “a number of its satellites have experienced various anomalies over time”.

Globalstar’s shares, which were first offered to the public at $17 a share, fell 19 cents, or 11 percent, to $1.55 on Monday, the day before the litigation was dismissed, then gained 15 cents, or 9.7 percent Tuesday, to close at $1.70, the same price they closed at Thursday.