Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Global Power Equipment Group, Inc.
Oklahoma City, OK (May 15, 2015) – On May 13, 2015, a securities class action lawsuit was filed in the United States District Court for the Northern District of Texas against Global Power Equipment Group, Inc. (NYSE: GLPW). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is March 9, 2015 through May 6, 2015. More specifically, this litigation was filed because Defendants failed to disclose that: (1) the Company’s cost of sales in its financial statements for the annual period ended December 31, 2014 were understated; (2) the Company lacked adequate internal controls over its financial reporting; and (3) as a result of the foregoing, the Company’s financial statements were materially false and misleading at all relevant times.
On May 6, 2015, Global Power issued a press release after the close of trading announcing that it will restate its financial results for the annual period ended December 31, 2014. In the release, the Company stated that "the financial statements for the annual period ended December 31, 2014 should not be relied upon because of accounting errors affecting the fourth quarter of 2014 that were discovered during the first quarter 2015 financial review process."
On this news, the Company’s shares declined to close at $8.19 per share on May 7, 2015.
Plaintiff seeks to recover damages on behalf of all Global Power Equipment Group, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, July 13, 2015 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Fri, May 15, 2015
by Robin Hester filed under