NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in India Globalization Capital, Inc. (“India Globalization” or the “Company”) (formerly, NYSE:IGC) (Other OTC:IGCC) of the January 2, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in India Globalization stock or options between October 25, 2017 and October 29, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/IGC. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased India Globalization securities between October 25, 2017 and October 29, 2018 (the “Class Period”). The case, Samn v. India Globalization Technology et al, No. 18-cv-06199 was filed on November 2, 2018 and has been assigned to Judge Dora Lizette Irizarry.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) India Globalization’s business model was in a state of change in order to lure potential blockchain and cannabis investors; (2) India Globalization had overstated the benefits of its relationships with manufacturers, partners, and distributors in order to inflate the Company’s potential commercial success in the blockchain and cannabis markets; (3) as a result, the New York Stock Exchange (“NYSE”) delisted India Globalization’s shares from their exchange; and (4) consequently, Defendants’ statements about India Globalization’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Specifically, on October 4, 2018, MarketWatch published an article which detailed the suspicious nature of India Globalization’s public statements regarding the Company’s cannabis-infused energy drink business initiatives, its ability to utilize a Malaysian manufacturer to transition into producing cannabis-infused energy drinks, and its partnerships with both Dama Pharma and a German distributor.
On this news, the Company’s stock price fell from $6.41 per share on October 4, 2018 to $4.05 per share on October 5, 2018—a $2.36 or 36.72% drop.
Then, on October 29, 2018, the NYSE announced that the delisting process would commence for India Globalization’s stock traded on its exchange. The delisting process was initiated at least in part because the NYSE found that the Company had “substantially discontinued the business that it conducted at the time it was listed or admitted to trading.”
On this news, share of India Globalization were halted.
On the next day, October 30, 2018, shares of India Globalization began trading under the ticker symbol “IGCC.” The stock price fell from $2.49 per share on October 26, 2018 to $0.56 per share on October 30, 2018—a $1.93 or 77.5% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding India Globalization’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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