NEW YORK, May 15, 2015 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a securities class action has been filed in the United States District Court for the Northern District of Texas on behalf of those who purchased shares of Global Power Equipment Group Inc. ("Global Power" or the "Company") (NYSE:GLPW), during the period between March 9, 2015 and May 6, 2015 inclusive (the "Class Period").
If you purchased Global Power securities during the Class Period, you may, no later than July 13, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of all class members in directing the litigation. Any member of the purported 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.
If you want more information about the Global Power Securities Class Action, contact Morgan & Morgan at 1(800) 732-5200 or email info@morgansecuritieslaw.com
The complaint alleges that during the Class Period, defendants made false and misleading statements and failed to disclose the following (i) the Company's cost of sales in its financial statements for the annual period ended December 31, 2014 were understated; (ii) the Company lacked adequate internal controls over its financial reporting; and (iii) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On May 6, 2015, the Company announced in an Securities and Exchange Commission ("SEC") filing that, "[i]t will delay the filing of its Form 10-Q for the first quarter of 2015 and restate its financial results for the annual period ended December 31, 2014. As a result, the Company is also withdrawing its previously issued earnings guidance for 2015 at this time. On May 5, 2015, the Audit Committee of the Board of Directors of Global Power, in consultation with its outside advisors and management, concluded that the financial statements for the annual period ended December 31, 2014 should not be relied upon because of accounting errors affecting the fourth quarter of 2014 that were discovered during the first quarter 2015 financial review process. Those errors resulted in an understatement of the Company's cost of sales in the quarterly and annual periods ended December 31, 2014."
Following this news, shares of Global Power fell $4.05 per shares, over 33%, to close at $8.19 on May 7, 2015.
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