A class action lawsuit was filed in the United States District Court for the District of Columbia on behalf of all persons who purchased the securities of Iridium World Communications, Inc. (NASDAQ:IRID) between September 9, 1998 and March 29, 1999 (the "Class Period").
The lawsuit charges Iridium, certain officers and directors of Iridium, and Motorola, Inc. ("Motorola") with violations of the federal securities laws and regulations of the United States. The Complaint alleges that during the Class Period, defendants issued false and misleading statements and failed to disclose material facts concerning the Company's ability to fully launch the Iridium System. Specifically, during the Class Period, defendants falsely reported achievable subscriber numbers and revenue figures, failed to disclose the serious technical problems with the Iridium System, failed to disclose delays in handset production which resulted in a shortage of the necessary handsets which were required to operate the Iridium System, and that, absent achieving the requisite subscriber numbers and revenue figures, the Company would violate covenants between itself and its lenders.
The Company's fraudulent practices were disclosed on March 29, 1999 when, for the first time, the Company disclosed that it would not meet its necessary subscriber numbers and that as a direct consequence would not be able to satisfy its Secured Credit Facility covenants. Accordingly, the Company's common stock dropped approximately 73% since its May 1998 high.
Plaintiff seeks to recover damages on behalf of all those who purchased IRID common stock during the Class Period, excluding defendants and their affiliates.

Update

On March 18, 2001, the Court consolidated the twenty individual actions filed on behalf of the purchasers of Iridium stock and notes, into one consolidated class action and also appointed eight lead plaintiffs and lead counsel for the class.
On May 13, 2002, plaintiffs filed a consolidated amended complaint on behalf of the shareholder class. Defendants moved to dismiss the complaint, which was denied.
On January 10, 2003, plaintiffs moved for partial summary judgment.
On January 9, 2006, the Court certified this action as a class action on behalf of all investors who purchased Iridium securities, purchased Iridium call options, and/or sold Iridium put options during the period from September 8, 1998 to May 13, 1999 who suffered damages. A sub-class consisting of all investors who purchased Iridium Class A common stock pursuant to, or traceable to, Irdium's Registration Statement filed on or about October 13, 1998, and amended November 13, 1998, who suffered damages. There are certain exclusions from the class, such as the defendants in this action and the officers and directors of Iridium and Motorola.
The Court also appointed representatives of the class and sub-class, and appointed the law firms of Wolf Haldenstein Adler Freeman & Herz LLP and Milberg Weiss Bershad & Schulman LLP as co-lead counsel for the plaintiff class.