LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) reminds investors of the October 10, 2017 deadline in the class action lawsuit filed on behalf of investors who purchased GlobalSCAPE, Inc. (“GlobalSCAPE” or the “Company”) (NYSEMKT: GSB) securities between January 26, 2017 and August 7, 2017, inclusive (the “Class Period”). GlobalSCAPE investors have until October 10, 2017 to file a lead plaintiff motion. To obtain information or participate in the class action, please visit the GlobalSCAPE page on our website at www.glancylaw.com/case/globalscape-inc.
On August 7, 2017 Global 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, the Company’s share price fell 17.66% to close at $3.87 on August 8, 2017, thereby damaging investors.
The complaint filed in this class action alleges that throughout the Class Period, the Company made false and/or misleading statements and/or failed to disclose that: (i) 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; (ii) the Company's total current assets and total assets were overstated by $292,000; (iii) the Company's total stockholder equity and total liabilities and stockholders' equity were overstated by $217,000 and $292,000, respectively; (iv) the Company lacked adequate internal controls over financial reporting; and (v) that as a result, Global's publicly disseminated financial statements were materially false and misleading.
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If you purchased shares of GlobalSCAPE during the Class Period you may move the Court no later than October 10, 2017 to ask the Court to appoint you as lead. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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