GlobalSCAPE, Inc. Potential Securities Fraud Claims for GlobalSCAPE, Inc. Investors
Kehoe Law Firm P.C. securities attorneys are investigating potential securities class action claims on behalf of purchasers of GlobalSCAPE, Inc. (“GlobalSCAPE” or “Company”) (NYSE:GSB) common stock or other Company securities and who may be affected by the anticipated financial restatement.
Audit Committee Finds “Improper Arrangements” with Customers
On August 7, 2017, after the close of trading, GlobalSCAPE announced that the Audit Committee of the Board of Directors has been conducting an investigation into “certain transactions in the fourth quarter of 2016” that involved “improper arrangements with customers that circumvented the Company’s internal controls. . . .”
GlobalSCAPE revealed that the investigation found improper arrangements with customers that circumvented internal controls resulting in overstating 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.
GlobalSCAPE to Restate 2016 Year End Financial Results and 1Q 2017
GlobalSCAPE also announced that it intends to issue a restatement of its previously issued financial statements by 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. Following this news, GlobalSCAPE common stock traded as low as $3.6301 on August 8, 2017, a drop of more than 20% from the $4.70 closing price on August 7, 2017. Kehoe Law Firm’s investigation concerns whether GlobalSCAPE and certain of its officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Have You Purchased or Acquired GlobalSCAPE Shares?
If you purchased or acquired GlobalSCAPE common stock or other securities and would like to speak privately with a securities attorney to learn more about the investigation and your potential legal rights, please fill out the form to the right or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected]; Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected]; or send an e-mail to [email protected].
Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing. Driven by a strong and principled sense of social responsibility and obtaining justice for the aggrieved, Kehoe Law Firm, P.C. represents plaintiffs seeking to recover investment losses resulting from securities fraud, breaches of fiduciary duty, corporate wrongdoing or malfeasance, those harmed by anticompetitive practices, and consumers victimized by fraud, false claims, deception or data breaches. Together, the partners of the Kehoe Law Firm, P.C. have spent more than 30 years prosecuting precedent-setting securities and financial fraud cases in federal and state courts on behalf of institutional and individual clients.