Gilat Satellite Networks, Ltd.Cohen Milstein is co-lead counsel for Plaintiffs in this putative class action on behalf of all persons who invested in Gilat Satellite Networks. Ltd (“Gilat”) during the period February 9, 2000 through May 29, 2002. Gilat is an Israeli-based communications company which designs, develops, markets and servies products that enable end-to-end telecommunications using VSAT satellite dish technology. The Amended Consolidated Class Action Complaint (the “Complaint”) alleges that Defendants Gilat, Yoel Gat and Yoav Leibovitch made materially misleading misrepresentations and omissions during the class period concerning its Starband joint venture, a subscription satellite internet service, and Gilat’s own finances. The Complaint alleges that Defendants recorded revenues in violation of GAAP and the Company’s own publicly reported revenue recognition policies and engaged in sham transactions to increase Gilat’s recorded revenues. By the end of the class period, Gilat announced an exponential increase in its allowance for doubtful accounts as a result of its improper revenue recognition practices and its joint venture, Starband, had filed for bankruptcy. Several months after the class period, Gilat itself filed for bankruptcy-style proceedings in Israel and a voluntary bankruptcy petition in the United States. The parties signed a Stipulation and Agreement of Settlement on November 13, 2006 which provides for a settlement fund of $20 million. Judge Charles P. Sifton of the Eastern District of New York preliminarily approved the settlement on April 19, 2007. A settlement hearing was held before Judge Sifton on July 19, 2007. On September 18, 2007, Judge Sifton issued an order finally approving the settlement. |
