Globalstar ordered to produce witness in merger suit

|By:, SA News Editor

Globalstar (NYSEMKT:GSAT) has been ordered to produce a witness for a June 21 deposition in a lawsuit filed by one of its investors, Bloomberg reports.

Shares are 2.3% lower after hours.

Jason Mudrick and Mudrick Capital Management sued the company in May over a planned merger with FiberLight and other assets also controlled by Globalstar chief Jay Monroe, calling it a "self-dealing" transaction.

Mudrick had converted into an activist investor the month before, on a quest to prevent the company from taking additional financing from Monroe's Thermo Companies.

Mudrick now says it needs a witness for the "limited purpose of testifying to the existence and volume of the documents sought in plaintiff’s demand."