Iridium has become the target of several class actions suites following a disastrous year for the mobile satellite phone provider. Analysts say a variety of factors including poor sales, satellite technical problems and a poor marketing campaign have combined to see investors slash the company's stock price crash from a high of $72 last May to less than $13 in recent days.
Law firms involved in the actions charge Iridium, certain officers of Iridium and Motorola, Inc. with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 as well as Rule 10b-5 promulgated thereunder. The complaint alleges that defendants issued a
series of materially false and misleading statements concerning the Company's ability to fully launch the Iridium System.
Specifically, during the Class Period, defendants falsely reported achievable subscriber numbers and projected revenue figures, failed to disclose the serious technical problems with the Iridium System, failed to disclose delays and shortages in necessary handset production, and that, absent achieving the requisite number of subscribers and revenue figures, the Company would violate certain covenants between itself and its lenders.
Law firms inviting Iridium shareholders to partake in the class action include various law firms;
