|[August 10, 2017]
INVESTOR ALERT: Goldberg Law PC Announces the Filing of a Securities Class Action Lawsuit against GlobalSCAPE, Inc.
Law PC, a national shareholder rights litigation firm, announces the
filing of a class action lawsuit against GlobalSCAPE, Inc.
("GlobalSCAPE" or the "Company") (NYSE MKT: GSB) for violations of
§§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5
promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company's shares between January 26, 2017
and August 7, 2017, inclusive (the "Class Period"), are encouraged to
contact the firm before October 10, 2017, the lead
plaintiff motion deadline.
If you are a shareholder who suffered a loss during the Class Period, click
here to participate.
We also encourage you to contact Michael Goldberg or Brian Schall, of
Goldberg Law PC, 1999 Avenue of the Stars, Suite 1100, Los Angeles, CA (News - Alert)
90067, at 800-977-7401, to discuss your
rights free of charge. You can alo reach us through the firm's website
or by email at email@example.com.
The class in this case has not yet been certified, and until
certification occurs, you are not represented by an attorney. If you
choose to take no action, you can remain an absent class member.
The Complaint alleges that during the Class Period, GlobalSCAPE made
false and/or misleading statements and/or failed to disclose: that the
Company 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; that the Company's total current
assets and total assets were overstated by $292,000; that the Company's
total stockholder equity and total liabilities and stockholders' equity
were overstated by $217,000 and $292,000, respectively; that the Company
lacked adequate internal controls over financial reporting; and that as
a result of the above, GlobalSCAPE's publicly disseminated financial
statements were materially false and misleading.
On August 7, 2017, the Company disclosed that its Audit Committee "has
been conducting an investigation into 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." GlobalSCAPE further revealed that "the
improper arrangements with customers that circumvented the Company's
internal controls 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." Following this news, GlobalSCAPE's stock
price dropped materially, which caused investors harm.
Goldberg Law PC represents investors around the world, and specializes
in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and rules of ethics.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170810006290/en/
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