BERWYN, Pa., Feb. 27, 2017 /PRNewswire/ -- RM LAW, P.C. announces that a class action lawsuit has been filed in United States District Court for the Central District of California on behalf of all persons or entities that purchased Global Eagle Entertainment Inc. ("Global Eagle" or the "Company") (NASDAQ: ENT) securities between July 27, 2016 and February 17, 2017, inclusive (the "Class Period").
Global Eagle shareholders may, no later than April 24, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Global Eagle and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, visit: www.maniskas.com.
The complaint charges Global Eagle and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Global Eagle provides content, connectivity, and digital media solutions for travel industry worldwide. The Company operates through two segments, Connectivity and Content.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose: (1) Global Eagle was unable to timely and properly account for the EMC acquisition; (2) consequently, the Company lacked effective internal controls over financial reporting; and (3) as a result, Global Eagle's financial statements were materially false and misleading at all relevant times.
On February 21, 2017, pre-market, Global Eagle announced that the Company's Chief Executive Officer David M. Davis and Chief Financial Officer ("CFO") Thomas E. Severson Jr. had resigned from their positions with the Company. Concurrently, Global Eagle announced that it expected to file its Annual Report for fiscal year 2016 after the March 16, 2017 U.S. Securities and Exchange Commission deadline, 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 $1.74, or 27.97%, to close at $4.48 on February 21, 2017.
If you are a member of the class, you may, no later than April 24, 2017, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.
For more information regarding this, please contact RM LAW, P.C. (Richard A. Maniskas, Esquire) toll-free at (844) 291-9299 or by email at [email protected] or visit: www.maniskas.com. For more information about class action cases in general or to learn more about RM LAW, P.C. please visit our website: www.maniskas.com.
RM LAW, P.C. is a national shareholder litigation firm. RM LAW, P.C. is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.