BOSTON, Aug. 9, 2017 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors nationwide, announces that it has filed a class action lawsuit against GlobalSCAPE, Inc. ("Global" or the "Company") (NYSE: GSB) and certain of its officers and directors for violations of the federal securities laws.
If you purchased or otherwise acquired Global securities during the Class Period described below and have questions about your legal rights or possess information relevant to this lawsuit, please contact attorney Bradley Vettraino at (617) 398-5600, by email at email@example.com, or by visiting www.blockesq.com/gsb.
On August 7, 2017, after trading had closed, Global disclosed that its audit committee has been "conducting an investigation" into certain transactions in the fourth quarter of 2016" and that the Company "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, Global's share price fell 17.66% to close at $3.87 on August 8, 2017, causing millions in losses to investors.
The lawsuit, brought on behalf of investors who purchased or otherwise acquired Global securities between January 26, 2017 and August 7, 2017, inclusive (the "Class Period") alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) Global 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.
If you wish to serve as a lead plaintiff, you must move the Court no later than October 9, 2017. As a member of the class, you may seek to file a motion to serve as a lead plaintiff or take no action and remain an absent class member. If you wish to become involved in the litigation or have questions about your legal rights, please contact attorney Bradley Vettraino at (617) 398-5600, by email at firstname.lastname@example.org.
Confidentiality to whistleblowers or others with information relevant to this investigation is assured.
Block & Leviton LLP is a Boston-based law firm representing investors nationwide. The firm's lawyers have collectively been prosecuting securities cases on behalf of individual and institutional investors for over 50 years, and have recovered billions of dollars on their behalf. Block & Leviton's investigations into corporate wrongdoing were recently covered by the New York Times.
The lawsuit is pending in the Western District of Texas and is captioned Giovagnoli v. GlobalSCAPE, Inc., et al., No. 5:17-cv-00753. The courthouse is located at 2450 State Hwy. 118 Alpine, Texas 79830.
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Block & Leviton LLP
Bradley J. Vettraino
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