GlobalSCAPE, Inc. Hit With Securities Fraud Class Action Over Restatement Announcement
WASHINGTON, DC (September 5, 2017) — U.S. Market Advisors Law Group PLLC announces that a securities class action has been filed against GlobalSCAPE, Inc. (“GlobalSCAPE” or the “Company”)(NYSE MKT: GSB). The class action is on behalf of investors who acquired GlobalSCAPE common stock between January 26, 2017 and August 7, 2017.
Investors with losses have until October 10, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. The Lead Plaintiff is a representative for absent members of the class. Investors do not need to seek appointment as Lead Plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action. Contact USMA Law Group to discuss this action.
Allegations Against GlobalSCAPE
GlobalSCAPE provides secure information exchange capabilities for enterprises and consumers through the development and distribution of software, delivery of managed and hosted solutions, and provisioning of associated services. The Company’s primary product is Enhance File Transfer.
According to the Complaint, throughout the Class Period, GlobalSCAPE made false and/or misleading statements and/or failed to disclose: that the Company overstated the reported amounts of accounts receivable as of December 31, 2016, and license revenue for the three months and year ended December 31, 2016, by approximately $403,000 and $396,000, respectively, resulting in the overstatement of the Company’s revenues for those periods by the same amounts; that GlobalSCAPE’s total current assets and total assets were overstated by $292,000; that the Company’s total stockholder equity and total liabilities and stockholders’ equity were overstated by $217,000 and $292,000, respectively; that GlobalSCAPE lacked adequate internal controls over financial reporting; and that as a result of the above, the Company’s publicly disseminated financial statements were materially false and misleading.
On August 7, 2017, after trading had closed, GlobalSCAPE disclosed that its audit committee “has been conducting an investigation into certain transactions in the fourth quarter of 2016 involving improper arrangements with customers that circumvented the Company’s internal controls and their potential effect on previously reported revenue.” The Company further disclosed that it “intends to effect a restatement of its previously issued financial statements through filing an amended Annual Report on Form 10-K for the year ended December 31, 2016 and an amended Quarterly Report on Form 10-Q for the quarter ended March 31, 2017.”
On this news, GlobalSCAPE’s share price fell 17.66% to close at $3.87 on August 8, 2017, causing millions in losses to investors.
About USMA Law Group
U.S. Market Advisors Law Group PLLC is a national law firm based in Washington, D.C. The firm represents investors worldwide in U.S. securities class action lawsuits.
Contact
David P. Abel
(202) 274-0237
[email protected]