My Name is Earl
Guest
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 Posted:
Tue Oct 04, 2005 12:08 am Post subject:
Re: God fearin republicans must sign up for Starband! |
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Earle Haterton wrote:
| Quote: | Starband is real high speed internet...unlike that filthy Wildblue company
that makes all kinds of promises and never delivers! Starband is for hard
workin people who dont mind payin for real braodband access....not like
those free loadin Wildblue users!
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Looks like starband still has legal issues --
http://www.jpost.com/servlet/Satellite?pagename=JPost/JPArticle/ShowFull&cid=1127987659909
Court grants time to amend Gilat case
DANIEL KENNEMER, THE JERUSALEM POST Sep. 30, 2005
New York's Eastern District Court has granted plaintiffs a requested
leave to add to their complaints against Gilat Satellite Networks, while
Gilat's motion to dismiss all fraud allegations against it was partially
dismissed and partially granted.
Nine complaints were filed against Gilat CEO Yoel Gat and CFO Yoav
Leibovitch in March 2002, alleging that that the two had exaggerated the
success of a joint venture called StarBand, fraudulently described the
company's accounting practices, and inflated revenues, which
artificially boosted the value of Gilat stocks.
Leumi PIA Funds, currently being sold to Harel Insurance by Bank Leumi
in accordance with the Bachar reforms, was named as lead defendant in
the case in January 2003.
In an interim ruling last week, the court granted the plaintiffs time to
amend their complaint, and made several findings relating to the
defendants' motion to dismiss.
The court found that the plaintiffs adequately pled that the defendants
falsely stated on StarBand's Web site that the company had stopped
taking orders due to the overwhelming response, when in fact only 80 to
90 customers were registering each day at the time. Gat also falsely
claimed that Gilat was expanding into new distribution channels, the
court found.
Nonetheless, Gilat's excuse for withdrawing StarBand's initial public
offering – which he pinned on weak financial markets – was not
sufficiently proven by the plaintiff to be fraudulent, though technical
problems within the company were apparently also at the root of the
decision to withdraw the IPO, the court held.
A cautionary statement provided adequate legal cover for the company's
claim that StarBand users would enjoy access speeds ten times faster
than dial-up modems, since it referred to risks of delayed technological
development.
More significantly, the court found that other cautionary statements
were not enough to cover the extent of Gilat's inflated revenues, since
the company did not warn in those statements that it had not adhered to
Generally Accepted Accounting Principles (GAAP) when presenting the numbers.
The court found that there was in fact strong circumstantial evidence of
conscious misbehavior or recklessness, since the company had publicly
stated that it conformed to GAAP. |
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