NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against GlobalSCAPE, Inc. (“GlobalSCAPE” or the “Company”) (NYSEMKT:GSB).
On August 7,2017, GlobalSCAPE released a press release announcing that the Company is conducting an internal 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 said that based on the results of the investigation to date, “the improper arrangements with customers that circumvented the Company’s internal controls have the effect of 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.”
Additionally, the Company announced 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.”
After the announcement, GlobalSCAPE’s share price fell from $4.70 per share on August 7, 2017 to a closing price of $3.87 on August 8, 2017—a $0.83 or a 17.66% drop.
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