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COUGHLIN STOIA GELLER RUDMAN & ROBBINS LLP FILES CLASS
ACTION SUIT AGAINST ORBCOMM, INC
New York – September 20, 2007 – Coughlin Stoia Geller Rudman & Robbins LLP (“Coughlin Stoia”) (http://www.csgrr.com/cases/orbcomm/) today announced that a class action has been commenced in the United States District Court for the District of New Jersey on behalf of a Class consisting of all persons other than Defendants who purchased the common stock of ORBCOMM, Inc. (“ORBCOMM” or the “Company”)(NASDAQ:ORBC) pursuant and/or traceable to the Company’s initial public offering (the “IPO”) on or about November 3, 2006 through August 14, 2007, seeking to pursue remedies under the Securities Act of 1933 (the “Securities Act”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.csgrr.com/cases/orbcomm/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges ORBCOMM and certain of its officers and directors with violations of the Securities Act. ORBCOMM is a satellite-based data communication company that operates a two-way wireless data messaging system optimized for narrowband data communication worldwide.
According to the complaint, on or about October 30, 2006, ORBCOMM filed with the Securities and Exchange Commission a Form S-1/A Registration Statement (the “Registration Statement”), for the IPO. On or about November 3, 2006, the Prospectus with respect to the IPO, which forms part of the Registration Statement, became effective and, including the exercise of the over-allotment, more than 9.2 million shares of ORBCOMM’s common stock were sold to the public, thereby raising more than $101 million. The complaint alleges that the Prospectus contained inaccurate statements of material fact because it failed to disclose that demand for the Company’s products was weakening as certain end-users were delaying purchases and international sales were being negatively impacted by delays in modifying regional applications.
Then, on August 14, 2007, ORBCOMM issued a press release announcing its financial results for the second quarter of 2007, the period ending June 30, 2007. In the press release and thereafter, the Company revealed that it was experiencing weakening demand for its products and services and was not adding subscribers at the rates it had anticipated. In response to this announcement, the price of ORBCOMM common stock declined from $11.18 per share to $7.86 per share on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of a Class consisting of all persons other than Defendants who purchased the common stock of ORBCOMM pursuant and/or traceable to the Company’s IPO on or about November 3, 2006 through August 14, 2007, seeking to pursue remedies under the Securities Act. The plaintiff is represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Coughlin Stoia, a 180-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Coughlin Stoia lawyers have been responsible for more than $45 billion in aggregate recoveries. The Coughlin Stoia Web site (http://www.csgrr.com) has more information about the firm.
Contact:
Coughlin Stoia Geller Rudman & Robbins LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld
djr@csgrr.com
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