Robbins Umeda LLP Announces the Filing of a Class Action Suit Against GLG Life Tech Corporation
Robbins Umeda LLP announces the filing of a federal securities class action by an investor in the U.S. District Court for the Southern District of New York on behalf of purchasers of GLG Life Tech Corporation (NASDAQ: GLGL) shares between February 1, 2011 and November 13, 2011 (the “Class Period”). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
The complaint alleges that beginning on February 1, 2011, certain officers and directors at GLG Life Tech issued a series of positive statements to investors about the business condition, future prospects, and true performance of the company that were materially false and misleading, which were designed to artificially inflate the value of the company. In particular, the complaint alleges that officials at GLG Life Tech withheld material adverse facts about: (1) the truth surrounding GLG Life Tech’s production issues; (2) the poor consumer response to the company’s signature All Natural Zero and Zero Calorie (AN0C) and stevia product lines; and (3) that the company would not meet its earnings projections.
On October 6, 2011, GLG Life Tech shocked the market by issuing a press release containing a partial acknowledgement the company was experiencing production, demand, and distributor issues that were impacting its business. On this, news shares of GLG Life Tech declined $1.47 per share, or 42% of their value, to close on the day at just $1.99 per share. Then, on November 14, 2011, the company announced disappointing financial results for the fiscal quarter ending September 30, 2011. These results contained the additional acknowledgement that, in response to ongoing production and demand issues, GLG Life Tech “decided to temporarily discontinue providing formal financial guidance in revenues, EBITDA and capital expenditures.”
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.