Global Eagle Entertainment Inc (NASDAQ: ENT) Investor Securities Class Action Lawsuit 02/23/2017
February 23, 2017 - An investor in shares of Global Eagle Entertainment Inc (NASDAQ: ENT) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by Global Eagle Entertainment Inc in connection with certain allegedly false and misleading statements made between November 9, 2016 and February 20, 2017.
According to the complaint the plaintiff alleges on behalf of purchasers of Global Eagle Entertainment Inc (NASDAQ: ENT) common shares between November 9, 2016 and February 20, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between November 9, 2016 and February 20, 2017, the defendants made false and/or misleading statements and/or failed to disclose that Global Eagle Entertainment Inc’s remediation plans to address the material weaknesses in its internal controls over financial reporting were deficient, and that as a result, Defendants’ statements about the Company’s business, operations and prospects were materially false and misleading and/or lacked a reasonable bases at all relevant times.
Global Eagle Entertainment Inc reported that its annual Total Revenue increased from $387.74 million in 2014 to $426.03 million in 2016 and that its Net Loss declined from $57.39 million in 2014 to $2.13 million in 2015.
On February 21, 2017, Global Eagle Entertainment Inc announced that Dave Davis, the Company’s CEO, and Tom Severson, the Company’s CFO, had both resigned effective immediately. Global Eagle Entertainment Inc further disclosed that it would be unable to timely file its 2016 annual report, and that it would need to withdraw its guidance for 2016 financial performance.
Shares of Global Eagle Entertainment Inc (NASDAQ: ENT) declined to as low as $4.00 per share on February 22, 2107.
On February 24, 2016, NASDAQ: ENT shares closed at $4.32 per share.