NEW YORK, Aug. 10, 2017 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against GlobalSCAPE, Inc. (“GlobalSCAPE” or the “Company”) (Nasdaq:GSB) in the United States District Court for the Western District of Texas on behalf of a class consisting of investors who purchased or otherwise acquired GlobalSCAPE securities on the open market from January 26, 2017 through August 7, 2017, inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of the Securities Exchange Act of 1934.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) 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; (2) the Company’s total current assets and total assets were overstated by $292,000; (3) the Company’s total stockholder equity and total liabilities and stockholders’ equity were overstated by $217,000 and $292,000, respectively; (4) the Company lacked adequate internal controls over financial reporting; and (5) that as a result, the Company’s publicly disseminated financial statements were materially false and misleading. When the true details entered the market, the lawsuit claims that investors suffered damages.
If you wish to serve as lead plaintiff, you must move the Court no later than October 10, 2017. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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