NEW ORLEANS, Dec. 8, 2017 /PRNewswire/ -- Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC ("KSF"), announces that KSF has commenced an investigation into GlobalSCAPE, Inc. (NYSE: GSB).
On August 7, 2017, GlobalSCAPE revealed an internal investigation by its Audit Committee regarding "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" that "have the effect of overstating 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." Then, on November 20, 2017, the Company disclosed that its auditing firm, RSM, "was withdrawing from its engagement by the Audit Committee to reissue its audit report on the consolidated financial statements… for the year ended December 31, 2016" for the stated reason that "based on the information the Audit Committee provided from its investigation, RSM had concluded that, in its professional judgment, it could no longer rely on management's representations." Following the August disclosure, the Company was sued in a securities class action lawsuit for failing to disclose material information, violating federal securities laws, which is ongoing.
KSF's investigation is focusing on whether GlobalSCAPE's officers and/or directors breached their fiduciary duties to GlobalSCAPE's shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of GlobalSCAPE shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (email@example.com).
About Kahn Swick & Foti, LLC
KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities, antitrust and consumer class actions, along with merger & acquisition and breach of fiduciary litigation against publicly traded companies on behalf of shareholders. The firm has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
206 Covington St.
Madisonville, LA 70447
SOURCE Kahn Swick & Foti, LLC