NEW YORK, April 05, 2017 (GLOBE NEWSWIRE) -- Safirstein Metcalf LLP 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 or otherwise acquired securities of Global Eagle from between July 27, 2016 and February 20, 2017 (“Class Period”).
If you purchased Global Eagle stock during the Class Period, and would like more information about getting involved in the Global Eagle Class Action, please call 1-800-221-0015, or email info@SafirsteinMetcalf.com . 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. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
On July 27, 2016, Global Eagle announced that it had completed its previously announced acquisition of Emergency Markets Communications (“EMC”), a communications services provider to maritime and hard-to-reach land markets.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Global Eagle was unable to timely and properly account for the EMC acquisition; (ii) consequently, the Company lacked effective internal controls over financial reporting; and (iii) as a result, Global Eagle’s financial statements were materially false and misleading at all relevant times.
On February 21, 2017, pre-market, Global Eagle announced that the Company’s Chief Executive Officer, David M. Davis, and Chief Financial Officer, (“CFO”) Thomas E. Severson Jr., had resigned from their positions with the Company. Concurrently, Global Eagle announced that it expected to file its Annual Report for fiscal year 2016 after the March 16, 2017 U.S. Securities and Exchange Commission deadline, citing the Company’s “increased size and complexity” after its acquisition of EMC, as well as “its need to transition the finance department after the prior CFO’s departure and its need to complete additional financial-closing procedures associated with the Company’s material weaknesses in internal control over its financial reporting.”
Following this news, Global Eagle’s share price fell $1.74, or 27.97%, to close at $4.48 on February 21, 2017.
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Safirstein Metcalf LLP focuses its practice on shareholder rights. The law firm also practices in the areas of antitrust and consumer protection. All of the Firm’s legal endeavors are rooted in its core mission: provide investor and consumer protection.
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