Robbins Geller Rudman & Dowd LLP Announces Securities Cases Have Been Filed on Behalf of Purchasers of India Globalization Capital, Inc. Stock
SAN DIEGO--(BUSINESS WIRE)--Dec 20, 2018--Robbins Geller Rudman & Dowd LLP announces that securities class action cases have been filed on behalf of purchasers of India Globalization Capital, Inc. (OTC:IGCC) securities between October 25, 2017 and October 29, 2018 (the “Class Period”). Two actions were filed in two different courts: Tchatchou v. India Globalization Capital, Inc., No. 8:18-cv-03396 (D. Md. – Judge Grimm), and Samn v. India Globalization Capital, Inc., No. 1:18-cv-06199 (E.D.N.Y. – Judge Irizarry).
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased India Globalization securities during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff or have questions concerning your rights, please contact Brian Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. Lead plaintiff motions must be filed with the court no later than 60 days from November 2, 2018.
The complaints charge that India Globalization and three senior executive officers violated the Securities Exchange Act of 1934 by issuing materially false and misleading statements and/or failing to disclose adverse facts about the Company’s business, operations, and prospects. Specifically, the complaints allege that defendants failed to disclose adverse information regarding India Globalization’s business and operations, including that: (1) India Globalization’s business model was being abandoned to lure potential blockchain and cannabis investors; (2) India Globalization had overstated the benefits of its relationships with manufacturers, partners, and distributors to inflate its potential commercial success in the blockchain and cannabis markets; and (3) as a result, the New York Stock Exchange (“NYSE”) delisted India Globalization’s shares from its exchange. As a result of these false statements and/or omissions, shares of India Globalization traded at artificially inflated prices during the Class Period, reaching a high of $14.58 per share.
On September 25, 2018, when the Company announced it was going to enter into the Hemp/CBD-infused energy drink space with its introduction of several products, including “Nitro G,” a sugar free energy drink, the price of India Globalization shares increased 458% within a week of the announcement. Following this astronomic rise in the Company’s stock price, Citron Research started to question the veracity of the Company’s operations and MarketWatch launched an investigation and published a story similarly questioning the Company’s operations. This caused a precipitous decline in the price of India Globalization’s stock price.
Then, on October 29, 2018, the NYSE announced that trading in the Company’s stock would be immediately suspended and delisted from the exchange. The exchange’s press release stated that it had commenced delisting procedures pursuant to the NYSE American Company Guide §1003(c)(i), which states that “where the issuer has substantially discontinued the business that it conducted at the time it was listed . . . and has become engaged in ventures or promotions which have not developed to a commercial stage or success of which is problematical, it shall be considered an operating company for the purposes of continued trading and listing on the Exchange.” The release went on to state that “the Company or its management have engaged in operations which, in the opinion of the Exchange, are contrary to the public interest.” On this news, trading in India Globalization shares was halted, and when the shares resumed trading the next day, the price of the shares fell 77.5% to close at $0.56 per share on October 30, 2018.
Robbins Geller is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For five consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in both the amount recovered for shareholders and the total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.
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CONTACT: Robbins Geller Rudman & Dowd LLP
Brian Cochran, 800-449-4900
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Geller Rudman & Dowd LLP
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PUB: 12/20/2018 04:49 PM/DISC: 12/20/2018 04:49 PM