NEW YORK, Sept. 15, 2017 (GLOBE NEWSWIRE) — Safirstein Metcalf LLP announces that a class action lawsuit has been filed against GlobalSCAPE, Inc. (“GlobalSCAPE” or the “Company”) (NYSE:GSB) securities and certain of its officers, on behalf of a class who purchased GlobalSCAPE shares between January 26, 2017 and August 7, 2017, inclusive (the “Class Period”).
If you purchased or acquired shares of GlobalSCAPE during the class period, and would like more information about the shareholder class action, please contact Safirstein Metcalf LLP at 1-800-221-0015, or email info@SafirsteinMetcalf.com
If you wish to serve as lead plaintiff, you must move the Court no later than October 10, 2017. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that: (1) GlobalSCAPE 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; (2) GlobalSCAPE’s total current assets and total assets were overstated by $292,000; (3) GlobalSCAPE’s total stockholder equity and total liabilities and stockholders’ equity were overstated by $217,000 and $292,000, respectively; (4) GlobalSCAPE lacked adequate internal controls over financial reporting; and (v) consequently, GlobalSCAPE’s publicly disseminated financial statements were materially false and misleading.
On August 7, 2017, after-market hours, 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 also said 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.”
Following this news, GlobalSCAPE stock dropped 17.66% to close at $3.87 per share on August 8, 2017.
About Safirstein Metcalf LLP
Safirstein Metcalf LLP focuses its practice on shareholder rights. The law firm also practices in the areas of antitrust and consumer protection. All of the Firm’s legal endeavors are rooted in its core mission: provide investor and consumer protection.
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Safirstein Metcalf LLP
Peter Safirstein, Esq.
New York, NY 10001