San Diego, CA -- (SBWIRE) -- 08/29/2017 -- The Shareholders Foundation announces that an investor in NYSEMKT:GSB shares filed a lawsuit against GlobalSCAPE, Inc over alleged Securities Laws violations.

Investors who purchased shares of GlobalSCAPE, Inc. (NYSEMKT:GSB) have certain options and for certain investors are short and strict deadlines running. Deadline: October 10, 2017. NYSEMKT:GSB investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call 858-779-1554.

The plaintiff claims that between January 26, 2017 and August 7, 2017, the defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that GlobalSCAPE overstated the reported amounts of accounts receivable as of December 31, 2016, and license revenue for the three months and year ended December 31, 2016, by approximately $403,000 and $396,000, respectively, resulting in the overstatement of the Company's revenues for those periods by the same amounts, that GlobalSCAPE's total current assets and total assets were overstated by $292,000, that GlobalSCAPE's total stockholder equity and total liabilities and stockholders' equity were overstated by $217,000 and $292,000, respectively, that GlobalSCAPE lacked adequate internal controls over financial reporting, and that as a result, GlobalSCAPE's publicly disseminated financial statements were materially false and misleading.

San Antonio, TX based GlobalSCAPE, Inc. (NYSEMKT:GSB) provides secure information exchange capabilities for enterprises and consumers through the development and distribution of software, delivery of managed and hosted solutions, and provisioning of associated services. GlobalSCAPE, Inc. reported that its annual Total Revenue rose from $30.84 million in 2015 to $33.34 million in 2016 and that its Net Income declined from $4.60 million in 2015 to $3.95 million in 2016. Shares of GlobalSCAPE, Inc. (NYSEMKT:GSB) grew from $3.36 per share in October 2016 to as high as $5.44 per share in July 2017.

On August 7, 2017, during aftermarket hours, GlobalSCAPE revealed that it's Audit Committee "has been conducting an investigation into certain transactions in the fourth quarter of 2016 involving improper arrangements with customers that circumvented the Company's internal controls and their potential effect on previously reported revenue." GlobalSCAPE further revealed that, based on the investigation, "the improper arrangements with customers that circumvented the Company's internal controls have the effect of overstating the reported amounts of accounts receivable as of December 31, 2016, and license revenue for the three months and year ended December 31, 2016, by approximately $403,000 and $396,000, respectively." Shares of GlobalSCAPE, Inc. (NYSEMKT:GSB) declined to as low as $3.63 per share on August 8, 2017.

Those who purchased shares of GlobalSCAPE, Inc. (NYSEMKT:GSB) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com