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You must submit the settlement "Proof" form attached below, in order to participate in this settlement. There is a strict deadline of February 16, 2019 by which all claims must be submitted. The instructions for submitting are included in the Proof and the Notice files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, INC.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Settlement Overview
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October 2, 2018 - The court preliminarily approved the settlement.
September 13, 2018 - A stipulation of settlement was filed by the parties.
July 26, 2018 - An amended complaint was filed.
August 9, 2017 - 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 Inc 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 Inc’s total current assets and total assets were overstated by $292,000, that GlobalSCAPE Inc’s total stockholder equity and total liabilities and stockholders’ equity were overstated by $217,000 and $292,000, respectively, that GlobalSCAPE Inc lacked adequate internal controls over financial reporting, and that as a result, GlobalSCAPE Inc’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 Inc 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 Inc 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.