Global Digital Solutions Inc (OTCMKTS: GDSI) Investor Securities Class Action Lawsuit 08/24/2016

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Company Name(s): 
Global Digital Solutions
Case Name: 
Global Digital Solutions Shareholder Class Action Lawsuit 08/24/2016
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
OTCMKTS: GDSI
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/24/2016
Class Period Begin: 
10/08/2013
Class Period End: 
08/11/2016
Court of Filing: 
U.S. District Court for the District of New Jersey
Deadline To File for Lead: 
10/24/2016
Date Settled: 
07/15/2019
Settlement Amount: 
$595,000
Deadline to Participate in Settlement: 
10/07/2019
Summary: 

July 15, 2019 - The court preliminarily approved the settlement.

June 12, 2019 - Parties filed a stipulation of settlement.

February 8, 2018 - Defendants filed a motion to dismiss.

January 18, 2018 - The lead plaintiff filed another amended complaint.

December 19, 2017 - The court granted defendants' motion to dismiss with leave to amend.

May 8, 2017 - Defendants filed a motion to dismiss.

March 21, 2017 - The lead plaintiff filed an amended complaint on behalf of investors who purchased Global Digital Solutions Inc (OTCMKTS: GDSI) common shares between October 8, 2013 and August 11, 2016. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between October 8, 2013 and August 11, 2016.

November 10, 2016 - Lead plaintiff and lead counsel were appointed.

October 24, 2016 - Lead plaintiff motions were filed.

August 24, 2016 - An investor in shares of Global Digital Solutions Inc (OTCMKTS: GDSI) filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by Global Digital Solutions Inc in connection with certain allegedly false and misleading statements made between October 8, 2013 through August 12, 2016.

According to the complaint the plaintiff alleges on behalf of purchasers of Global Digital Solutions Inc (OTCMKTS: GDSI) common shares between October 8, 2013 through August 12, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between October 8, 2013 through August 12, 2016 the defendants made false and/or misleading statements and/or failed to disclose that Airtronic USA Inc’s original equipment manufacturer supplier agreement that Global Digital Solutions Inc disclosed in its press releases in October, 2013 did not exist, that Global Digital Solutions Inc failed to remove these misleading statements from its website despite repeated requests to do so from the CEO of Airtronic, that Global Digital Solutions Inc lacked a reasonable basis for its revenue projection for 2014, that Global Digital Solutions Inc had no credible financing in place to acquire any company, that Global Digital Solutions Inc received various communications indicating Remington Outdoor Company Inc had no interest in Global Digital Solutions Inc’s unsolicited acquisition offer, that Remington had already rejected Global Digital Solutions Inc’s offer on several occasions, and that as a result, defendants’ statements about Global Digital Solutions Inc’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

On August 12, 2016, the Securities and Exchange Commission (“SEC”) charged Global Digital Solutions Inc’s former chairman and CEO Richard J. Sullivan, and former CFO David A. Loppert with defrauding investors by issuing false and misleading press releases purporting that Global Digital Solutions Inc was a budding leader in cyber arms manufacturing and security technology solutions. According to the SEC’s complaint, Sullivan and Loppert were behind the press releases and corporate filings that falsified Global Digital Solutions Inc’s operations and revenue projections when in reality it had no customers, never manufactured any cyber arms, and never provided any security technology services or solutions.