GlobalSCAPE, Inc. (NYSEMKT:GSB) Investor Securities Class Action Lawsuit 08/09/2017

If you purchased a significant amount of shares of GlobalSCAPE, Inc. (NYSEMKT:GSB) between January 26, 2017 and August 7, 2017, and / or if you purchased any NYSEMKT:GSB shares prior to January 2017 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: October 10, 2017. NYSEMKT:GSB investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
GlobalSCAPE
Case Name: 
GlobalSCAPE Shareholder Class Action Lawsuit 08/09/2017
Case Status: 
Lawsuit Filed
Affected Securities
NYSEMKT: GSB
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/09/2017
Class Period Begin: 
01/26/2017
Class Period End: 
08/07/2017
Court of Filing: 
U.S. District Court for the Eastern District of New York
Deadline To File for Lead: 
10/10/2017
Summary: 

August 9, 2017 (Shareholders Foundation) - An investor in shares of GlobalSCAPE, Inc. (NYSEMKT:GSB) filed a lawsuit in the U.S. District Court for the Western District of Texas over alleged violations of Federal Securities Laws by GlobalSCAPE, Inc. in connection with certain allegedly false and misleading statements made between. January 26, 2017 and August 7, 2017.

According to the complaint the plaintiff alleges on behalf of purchasers of GlobalSCAPE, Inc. (NYSEMKT:GSB) common shares between January 26, 2017 and August 7, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between January 26, 2017 and August 7, 2017, the defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that 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, that GlobalSCAPE’s total current assets and total assets were overstated by $292,000, that GlobalSCAPE’s total stockholder equity and total liabilities and stockholders’ equity were overstated by $217,000 and $292,000, respectively, that GlobalSCAPE lacked adequate internal controls over financial reporting, and that as a result, GlobalSCAPE’s publicly disseminated financial statements were materially false and misleading.

San Antonio, TX based GlobalSCAPE, Inc. (NYSEMKT:GSB) provides secure information exchange capabilities for enterprises and consumers through the development and distribution of software, delivery of managed and hosted solutions, and provisioning of associated services. GlobalSCAPE, Inc. reported that its annual Total Revenue rose from $30.84 million in 2015 to $33.34 million in 2016 and that its Net Income declined from $4.60 million in 2015 to $3.95 million in 2016. Shares of GlobalSCAPE, Inc. (NYSEMKT:GSB) grew from $3.36 per share in October 2016 to as high as $5.44 per share in July 2017.
On August 7, 2017, during aftermarket hours, GlobalSCAPE revealed that it’s 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.” GlobalSCAPE further revealed that, based on the investigation, “the improper arrangements with customers that circumvented the Company’s internal controls have the effect of overstating 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.” Shares of GlobalSCAPE, Inc. (NYSEMKT:GSB) declined to as low as $3.63 per share on August 8, 2017.