NEW YORK, Feb. 24, 2017 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Global Eagle Entertainment Inc. (“Global Eagle” or the “Company”) (Nasdaq: ENT ) in the United States District Court for the Central District of California on behalf of persons or entities who purchased Global Eagle stock on the open market from November 9, 2016 through February 20, 2017, inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of the Securities Exchange Act of 1934.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company’s remediation plans to address the material weaknesses in its internal controls over financial reporting were deficient; and (2) as a result, Defendants’ statements about the Company’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On February 21, 2017, Global Eagle announced that Chief Executive Officer Dave Davis and Chief Financial Officer Tom Severson both resigned effective February 20, 2017. Global Eagle also disclosed that it “expects to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2016 after the March 16, 2017 U.S. Securities and Exchange Commission deadline.” On this news, shares of Global Eagle fell $1.98 per share or over 31.8% over two trading days to close at $4.24 per share on February 22, 2017, damaging investors.
If you wish to serve as lead plaintiff, you must move the Court no later than April 24, 2017 . A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com .
Please visit our website at http://www.gme-law.com for more information about the firm.
