|[August 11, 2017]
INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of GlobalSCAPE, Inc. Investors and Encourages Investors to Contact the Firm
Law Offices of Howard G. Smith announces that a class action lawsuit has
been filed on behalf of investors who purchased GlobalSCAPE, Inc.
("GlobalSCAPE" or the "Company") (NYSEMKT:GSB)
securities between January 26, 2017 and August 7, 2017, inclusive
(the "Class Period"). GlobalSCAPE investors have until October
10, 2017 to file a lead plaintiff motion.
Investors suffering losses on their GlobalSCAPE investments are
encouraged to contact the Law Offices of Howard G. Smith to discuss
their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
On August 7, 2017 GlobalSCAPE 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." The Company further disclosed that it
"intends to effect a resatement 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, the Company's share price fell 17.66% to close at $3.87 on
August 8, 2017, thereby damaging investors.
The complaint filed in this class action alleges that throughout the
Class Period, the Company made false and/or misleading statements and/or
failed to disclose that: (i) GlobalSCAPE 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,
GlobalSCAPE's publicly disseminated financial statements were materially
false and misleading.
If you purchased GlobalSCAPE, have information or would like to learn
more about these claims, or have any questions concerning this
announcement or your rights or interests with respect to these matters,
please contact Howard G. Smith, Esquire, of Law Offices of Howard G.
Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by
telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com,
or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170811005485/en/
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