NEW YORK, April 4, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Global Eagle Entertainment Inc. ("Global Eagle" or the "Company") (NASDAQ: ENT) of the April 24, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Global Eagle common shares between July 27, 2016 and February 17, 2017 (the "Class Period"). The case, M and M Hart Living Trust v. Global Eagle Entertainment Inc. et al, No. 2:17-cv-01479 was filed on February 23, 2017, and has been assigned to Judge Percy Anderson.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) Global Eagle was unable to timely and properly account for the Emergency Markets Communications ("EMC") acquisition; (ii) consequently, the Company lacked effective internal controls over financial reporting; and (iii) as a result, Global Eagle's financial statements were materially false and misleading.
Specifically, pre-market on February 21, 2017, Global Eagle announced its Chief Executive Officer, David M. Davis ("CEO"), and Chief Financial Officer, Thomas E. Severson Jr. ("CFO"), had resigned from their positions with the Company. Additionally, Global Eagle announced it would not be able to file its Annual Report for fiscal year 2016 on time, citing the Company's "increased size and complexity" after its acquisition of EMC, as well as "its need to transition the finance department after the prior CFO's departure and its need to complete additional financial-closing procedures associated with the Company's material weaknesses in internal control over its financial reporting."
On this news, Global Eagle's share price fell from $6.22 per share on February 17, 2017 to a closing price of $4.48 on February 21, 2017 —a $1.74 or a 27.97% drop.
Request more information now by clicking here: www.faruqilaw.com/ENT . There is no cost or obligation to you.
If you invested in Global Eagle stock between July 27, 2016 and February 17, 2017 and would like to discuss your legal rights, visit www.faruqilaw.com/ENT. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Global Eagle's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that 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 of whether or not to serve as a lead plaintiff.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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SOURCE Faruqi & Faruqi, LLP