Shareholder Investigation of India Globalization Capital, Inc.
India Globalization Capital, Inc. (IGC) Accused of Misstating Its Business Prospects
According to the filed class action complaint against the company’s officers and directors for alleged violations of the Securities Act of 1934 between October 25, 2017 and October 29, 2018, India Globalization Capital, Inc. (IGC) touted its business prospects, including importation and distribution of its cannabinoid-based therapies to pharmacies in Germany and distribution of its cannabinoid-based therapies to dispensaries in Puerto Rico to aid Alzheimer’s patients. On September 28, 2018, IGC announced yet another distribution agreement and partnership – to distribute cannabis-infused energy drinks in Canada. This announcement caused IGC’s stock to sky-rocket by 458%, to go from $2.33 per share on September 25, 2018, to $13.00 on October 2, 2018.
On October 4, 2018, MarketWatch published an article noting “10 potential red flags for investors in IGC…” including IGC’s past troubles with the SEC, its history of changing course as new businesses become popular, and the fact that its business partners appear to be sham companies. As a result, IGC’s stock fell $2.44 per share, or over 27% on October 4, 2018, and by closing on October 5, 2018, IGC’s stock had dropped an additional almost 37%. Then, on October 29, 2018, the NYSE announced that IGC’s stock would be delisted because IGC “has substantially discontinued the business that it conducted at the time it was listed or admitted to trading…” On October 30, 2018, shares of IGC began trading OTC. The stock plummeted over 77% to close at $0.56 per share.
India Globalization Capital, Inc. (IGC) Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can please send us a message via the Shareholder Information form below.