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GlobalSCAPE, Inc. (GSB)

NYSEMKT:GSB

Summary

Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In GlobalSCAPE, Inc. To Contact The Firm

Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in GlobalSCAPE, Inc. (“GlobalSCAPE” or the “Company”) (NYSE MKT:GSB) of the October 10, 2017 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you invested in GlobalSCAPE stock or options between January 26, 2017 and August 7, 2017 and would like to discuss your legal rights, please fill out the form below.  There is no cost or obligation to you.  You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. 

The lawsuit has been filed in the U.S. District Court for the Western District of Texas on behalf of all those who purchased GlobalSCAPE common stock between January 26, 2017 and August 7, 2017 (the “Class Period”).  The case, Giovagnoli v. Globalscape, Inc. et al, No. 5:17-cv-00753 was filed on August 9, 2017.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing 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) GlobalSCAPE’s total current assets and total assets were overstated by $292,000; (iii) GlobalSCAPE’s total stockholders’ equity and total liabilities were overstated by $217,000 and $292,000, respectively; (iv) GlobalSCAPE lacked adequate internal controls over financial reporting; and (v) as a result, GlobalSCAPE’s publicly disseminated financial statements were materially false and misleading.

Specifically, after market 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.”  Further, the Company disclosed that it “intends to effect a restatement 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, GlobalSCAPE’s share price fell from $4.70 per share on August 7, 2017 to a closing price of $3.87 on August 8, 2017 —a $0.83 or a 17.66% drop.

Request Information

Please tell us about yourself by completing the form and we will provide you with additional
information on how to join the Class Action at no cost to you.

  • Case:
    GlobalSCAPE, Inc. (GSB)
  •    

* The submission of this form does not create an attorney-client relationship.

Contact Counsel

Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330

Email:

Case Details

Date:

  • 08/08/2017

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