NOTICE OF PROPOSED CLASS ACTION SETTLEMENT AND FINAL FAIRNESS HEARING
TO: All persons who were subscribers to GLOBALSTAR, INC. satellite voice and data services in the United States and were not in default on their subscription payments at any time from January 1, 2006 to February 28, 2007 (the "Class").
PLEASE READ THIS NOTICE CAREFULLY. THIS IS NOT A NOTICE OF A LAWSUIT AGAINST YOU. YOU MAY BENEFIT FROM READING THIS NOTICE.
YOU NEED NOT RESPOND TO THIS NOTICE IN ORDER TO RECEIVE BENEFITS THAT MAY BE AVAILABLE UNDER THE SETTLEMENT.
IF YOU DO NOT WANT TO BE A PART OF THE SETTLEMENT, YOU MUST EXCLUDE
YOURSELF BY ___________, 2010.
* There is a proposed settlement of a class action lawsuit known as Walsh v. Globalstar, Inc., 07-CV-01941 TEH, that is pending in the U.S. District Court for the Northern District of California (the "Litigation"). The proposed Settlement is with Globalstar, Inc. ("Globalstar" or the "Defendant") concerning the provision of allegedly defective twoway voice and data communications services through Globalstar's satellite network.
* You may be included in this proposed Settlement if you subscribed to Globalstar's satellite voice and data services in the United States and were not in default on your subscription payments in the period beginning January 1, 2006 throughFebruary 28, 2007(the "Class Period"), subject to certain eligibility criteria described in this Notice.
* The Court presiding over this case still has to decide whether to give final approval to the proposed Settlement. Valid requests for relief under the terms of the Settlement Agreement will be honored if the proposed Settlement is approved.
1.WHY YOU RECEIVED THIS NOTICE:You received this Notice because: Globalstar's billing records show that you subscribed to Globalstar satellite phone service during the Class Period and were not in default on your subscription payments; or, you downloaded it through the Settlement website, www.satphonesettlement.com.
2.WHAT THIS LAWSUIT IS ABOUT:The lawsuit alleges that Globalstar sold satellite telephones and satellite communication services when it knew, but failed to disclose, that its service was deteriorating and would not work for communicating from locations where cellular or landline service is limited or unavailable.
Globalstar believes that it has always dealt with its customers fairly and openly, and certainly did not hide anything. It denies any wrongdoing and makes no admission of liability by agreeing to the proposed Settlement described in this Notice. Nonetheless, the Defendant has concluded that further conduct of the Litigation would be expensive, and that it is desirable that the Litigation be fully and finally settled in the manner and upon the terms and conditions described in this Notice.
3.WHY THIS IS ACLASS ACTION:In a class action, one or more people called "class representatives" sue on behalf of themselves and other people who have similar claims. The people together are a "class" or "class members." A court must determine if a lawsuit or a settlement should proceed as a class action. If it does proceed as a class action, there may be a trial. A trial then decides the lawsuit for everyone in the class. Sometimes, the parties may settle without a trial.
The parties have agreed to this proposed Settlement that includes Current Subscribers and Former Subscribers, subject to certain limitations described in this Notice. The Court has preliminarily approved this proposed Settlement and will hold a hearing to decide whether it should be finally approved. (See Section 10 below). United States District Judge Thelton E. Henderson is presiding over this class action. This proposed Settlement will not become effective unless it is finally approved.
4.CLASS COVERED BY THE PROPOSED SETTLEMENT:You are included in the Settlement if you were a subscriber to Globalstar satellite telephone services in the United States and were not in default on your subscription payments at any time during the Class Period. Excluded from the Class are subscribers to Globalstar satellite communication services outside the United States, the District of Columbia, and U.S. territories; Globalstar and employees of Globalstar, members of the immediate family (parents, spouses, siblings, and children) of employees of Globalstar, and any Globalstar subsidiary or Globalstar affiliate; government customers (i.e., any federal state, local, or municipal purchasers, or any others who purchase on behalf of government customers or pursuant to a government plan); resellers (i.e. purchasers of Globalstar goods and services that retain and bill clients directly); customers of resellers; and any person who participated in Globalstar's Canadian settlement reached in the Quebec Superior Court on June 25, 2008.
If you fall within the definition of the Class in the prior paragraph, you are a "Class Member" and there is nothing you need to do to remain a Class Member. You need not do anything to become part of the Class.
If you are a Class Member and do not exclude yourself from the Class (as explained below), you will become a "Settlement Class Member," and you will be bound by all proceedings, orders, and judgments entered in connection with the proposed Settlement, including the release and dismissal with prejudice described below.
The Court has appointed the following lawyer as Lead Counsel to represent the Settlement Class for purposes of the proposed Settlement:
MASON LLP 1625 Massachusetts Avenue NW, Suite 605
5.PROPOSED SETTLEMENT BENEFITS: If you are a Settlement Class Member (that is, if you are a Class Member who does not exclude him or herself from the Settlement Class as described above) and the proposed Settlement is approved, you will be entitled to relief.
Notification of Eligibility for Settlement Benefits -- Second Notice Package: If the Court approves the Settlement, you will be sent a Post-Settlement Notice describing the form of relief available to you and how you may obtain that relief. Different forms of relief will be available for persons who were subscribers to Globalstar's satellite service at any time during the Class Period and are still subscribers ("Current Subscribers"), and persons who were subscribers at any time during the Class Period but were not current subscribers as of the date of the Fairness Hearing ("Former Subscribers"). (See Section 11 below).
Current Subscribers: If the Court approves the Settlement, Current Subscribers may choose ...