SAN DIEGO & BETHESDA, Md.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of India Globalization Capital, Inc. (OTC: IGCC) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Act of 1934 between October 25, 2017 and October 29, 2018. IGC develops and commercializes cannabis-based therapies to treat various medical and psychological conditions.
View this information on the law firm's Shareholder Rights Blog:
IGC Accused of Misstating Its Business Prospects
According to the complaint, the company touted its business prospects, including importation and distribution of its cannabinoid-based therapies to pharmacies in Germany and distribution of its cannabinoid-based therapies to dispensaries in Puerto Rico to aid Alzheimer's patients. On September 28, 2018, IGC announced yet another distribution agreement and partnership - to distribute cannabis-infused energy drinks in Canada. This announcement caused IGC's stock to sky-rocket by 458%, to go from $2.33 per share on September 25, 2018, to $13.00 on October 2, 2018.
On October 4, 2018, MarketWatch published an article noting "10 potential red flags for investors in IGC…" including IGC's past troubles with the SEC, its history of changing course as new businesses become popular, and the fact that its business partners appear to be sham companies. As a result, IGC's stock fell $2.44 per share, or over 27% on October 4, 2018, and by closing on October 5, 2018, IGC's stock had dropped an additional almost 37%. Then, on October 29, 2018, the NYSE announced that IGC's stock would be delisted because IGC "has substantially discontinued the business that it conducted at the time it was listed or admitted to trading…" On October 30, 2018, shares of IGC began trading OTC. The stock plummeted over 77% to close at $0.56 per share.
IGC Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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