Our attorneys are investigating potential claims on behalf of investors of GlobalSCAPE, Inc. (NASDAQ: GSB) regarding possible securities law violations.
Overstated Accounts Receivable, License Revenue Prompt Stock Drop
After the close of trading on August 7, 2017, GlobalSCAPE announced that the Audit Committee of its Board of Directors has been investigating “certain transactions in the fourth quarter of 2016 involving improper arrangements with customers that circumvented the Company’s internal controls. . . .” The investigation determined that these transactions resulted in the company overstating accounts receivable by $403,000 and overstating license revenue by $396,000. GlobalSCAPE also announced its plans to amend previously issued financial statements.
Following this news, GlobalSCAPE common stock has traded as low as $3.63 on August 8, 2017—a drop of more than 20% from its $4.70 closing price on August 7, 2017.
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