BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of GlobalSCAPE, Inc. (“GlobalSCAPE” or the “Company”) (NYSEMKT: GSB) investors concerning the Company and its officers’ possible violations of federal securities laws.
On August 7, 2017, 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, based on the investigation, “the improper arrangements with customers that circumvented the Company’s internal controls” has resulted in “overstating 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.”
On this news, the Company’s stock price fell approximately 15% during intraday trading on August 8, 2017.
If you purchased GlobalSCAPE securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.