The class action lawsuit, filed in United States District Court, District of Maryland, is on behalf of all persons and entities, other than Defendants and their affiliates, who purchased or otherwise, acquired India Globalization securities between June 21st, 2018 through October 29th, 2018 that are seeking to recover damages caused by the Defendants’ alleged violations of federal securities regulations.
The lawsuit seeks to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.”
India Globalization claimed on multiple occasions to be focused on the development and commercialization of cannabinoid based alternative therapies for indications such as Alzheimer’s disease, Parkinson’s disease, and pain. Since its inception however, the company has operated a legacy business that involves trading commodities and heavy equipment rental.
The class action lawsuit alleges that between June 21st and October 29th, “Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) India Globalization substantially discontinued the business that it conducted at the time it began trading on the NYSE American; (ii) the Company had become engaged in ventures or promotions which have not developed to a commercial stage; (iii) consequently, the Company is not an operating company for the purposes of continued trading and listing on the NYSE American; and (iv) as a result, India Globalization’s public statements were materially false and misleading at all relevant times.”
The allegations continue, stating that “on Sunday, October 28, 2018, an article was published on the financial news website Marketwatch, titled “All the potential red flags for investors in IGC, the pot stock that jumped 1,000% in three months.” The article discussed the “alarming number of red flags” it uncovered which “undermine” claims made by the Company. Then, on October 29, 2018, the NYSE American announced “that the staff of NYSE Regulation has determined to commence proceedings to delist the common stock of India Globalization Capital, Inc. (NYSE: IGC) — ticker symbol IGC — from the Exchange. Trading in the Company’s common stock on the NYSE American will be suspended immediately.” The NYSE American also said that the “Company or its management have engaged in operations which, in the opinion of the Exchange, are contrary to the public interest.”
Long story short, after that article was released, India Globalization Capital’s common stock ceased trading on the NYSE American, resulting in significant damages to the company’s shareholders.
If you are a shareholder who purchased India Globalization securities between June 21st, 2018, and October 29th, 2018, both dates inclusive, you have until January 2nd, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org.
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