NEW YORK, March 20, 2017 (GLOBE NEWSWIRE) -- Scott+Scott, Attorneys at Law, LLP (“Scott+Scott”), a national shareholder and consumer rights litigation firm, reminds investors that April 24, 2017 is the last day to file lead plaintiff papers in the lawsuit against Global Eagle Entertainment, Inc. (NASDAQ:ENT) (“Global Eagle” or the “Company”) related to potential violations of federal securities laws. If you are a Global Eagle shareholder, you are encouraged to contact Scott+Scott for more information.
Global Eagle provides content, connectivity, and digital media solutions for the travel industry worldwide. On July 27, 2016, Global Eagle announced that it had completed its acquisition of communication services provider Emergency Markets Communications (“EMC”). Global Eagle subsequently touted in press releases and in filings with the U.S. Securities and Exchange Commission (“SEC”) the success of the EMC acquisition, stating that it positioned Global Eagle “as a leader in supplying satellite-based connectivity and media to the rapidly growing global mobility market” and that “the integration process is well underway.” Global Eagle further highlighted the benefits and financial implications of the EMC acquisition, stating that the company’s revenue increased 33.4% compared to the prior year period. However, it has been alleged that Global Eagle officials failed to disclose that the company was unable to timely and properly account for the EMC acquisition and that the company lacked effective internal controls over financial reporting.
On February 21, 2017, Global Eagle announced that its Chief Executive Officer, David M. Davis, and Chief Financial Officer (“CFO”), Thomas E. Severson Jr., had resigned from their positions. The Company further revealed that it expected to file its Annual Report for fiscal year 2016 after the March 16, 2017 SEC deadline, citing the company’s “increased size and complexity” after its acquisition of EMC, its need to transition the finance department in the wake of the CFO’s departure, and its need to complete additional financial-closing procedures associated with the company’s material weaknesses in internal control over financial reporting. On this news, Global Eagle’s stock fell $1.74 per share, or nearly 28%, to close at $4.48 per share on February 21, 2017.
What You Can Do
If you purchased or acquired Global Eagle shares between July 27, 2016 and February 20, 2017 and you wish to discuss this lawsuit, or have questions about this notice or your legal rights, please contact attorney Rhiana Swartz at (844) 818-6980 or at rswartz@scott-scott.com.
About Scott+Scott, Attorneys at Law, LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.