NEW YORK--(BUSINESS WIRE)--The law firm of Wohl & Fruchter LLP has filed a class action lawsuit against Global Geophysical Services, Inc. (GGS) (NYSE: GGS) and certain of its officers. The class action, filed on March 21, 2014, in the United States District Court, Southern District of Texas, and docketed under 14-CV-0735, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired any securities of GGS between February 7, 2011 and March 17, 2014, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws.
If you are a holder of the Company’s common stock, or 11.5% Series A Cumulative Preferred Stock (Series A Preferred Stock), and wish to serve as a lead plaintiff, you have until May 19, 2014, to seek appointment by the Court. To discuss the case or learn more about becoming a lead plaintiff, please contact J. Elazar Fruchter at email@example.com, or call us toll free at 866.833.6245.
A copy of the complaint filed by Wohl & Fruchter LLP can be obtained at:
Global and its subsidiaries provide an integrated suite of seismic data solutions to oil and gas exploration and production companies worldwide. The Company's seismic data solutions primarily include seismic data acquisition, microseismic monitoring, data processing, and interpretation services, which deliver data that enables the creation of high resolution images of the earth's subsurface, and reveals complex structural and stratigraphic details.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, prospects and performance. Specifically, during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) for the years 2009 through the first three quarters of 2013, the Company's financial statements contained material misstatements and required restatement; (ii) the Company improperly recognized revenues during the relevant period; (iii) there were material weaknesses in the Company's internal controls; and (iv) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On March 17, 2014, after the close of trading, GGS announced that its financial statements and related auditors' reports for the fiscal years ended December 31, 2012, 2011, 2010, and 2009, and the first, second and third quarters of 2013 should no longer be relied upon because of accounting errors resulting from material weaknesses in the Company's internal controls. GGS further announced that it would conduct a thorough review of its financial statements from the foregoing years, and restate its consolidated financial statements from 2011 onward, as well as selected financial data for the 2009 and 2010 fiscal years in its 2013 Annual Report on Form 10-K (2013 Annual Report).
As a result of these financial reporting issues, GGS indicated that it will not timely file its 2013 Annual Report.
Simultaneously, GGS also announced that it is suspending payment of dividends on its Series A Preferred Stock, including the dividend payment scheduled for March 31, 2014, while certain events of default under its September 2013 Financing Agreement continue.
Upon the above news, the price of the Company's Series A Preferred Stock has dropped over 70% in trading since March 18, 2014, while the price of the Company’s common stock has dropped over 58% since March 18, 2014.
Wohl & Fruchter LLP is an experienced securities litigation firm representing plaintiffs in class actions arising from securities fraud and fiduciary breaches, as well as other complex litigation matters. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or to contact one of our partners.
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