Robbins Arroyo LLP: GlobalSCAPE, Inc. (GSB) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against GlobalSCAPE, Inc. (NYSE MKT: GSB) in the U.S. District Court for the Western District of Texas, San Antonio Division. The complaint is brought on behalf of all purchasers of GlobalSCAPE securities between January 26, 2017 and August 7, 2017, for alleged violations of the Securities Exchange Act of 1934 by GlobalSCAPE’s officers and directors. GlobalSCAPE, together with its subsidiaries, develops and distributes software, delivers managed and hosted solutions, and provides associated services for secure information exchange, and file transfer and sharing for enterprises and consumers worldwide.
GlobalSCAPE Accused of Implementing Inadequate Financial Controls
According to the complaint, GlobalSCAPE repeatedly assured investors of the effectiveness of the company’s internal control over financial reporting in its public filings. In reality, Global allegedly overstated multiple figures in its financial reports, causing them to be highly inaccurate. On August 7, 2017, Global disclosed that its audit committee was investigating transactions involving improper arrangements with customers that circumvented the company’s internal controls and their effect on previously reported revenue. The company further revealed that accounts receivable and license revenue were overstated by approximately $403,000 and $396,000, respectively, and that the company would restate its Form 10-K for the year ended December 31, 2016 and Form 10-Q for the quarter ended March 31, 2017. On this news, Global’s stock fell nearly 18% to close at $3.87 per share on August 8, 2017.
GlobalSCAPE Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.