NEW YORK, Dec. 30, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against India Globalization Capital, Inc. (“India Globalization” or the “Company”) (IGC)(IGCC) and certain of its officers. The class action, filed in United States District Court, District of Maryland, and index under 18-cv-03408, is on behalf of a class consisting of all persons and entities, other than Defendants and their affiliates, who purchased or otherwise, acquired India Globalization securities between June 21, 2018 through October 29, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased India Globalization securities between June 21, 2018, and October 29, 2018, both dates inclusive, you have until January 2, 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 or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
India Globalization purports 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. Its lead product is Hyalolex, an alternative oral therapy for the treatment of symptoms associated with Alzheimer’s disease. The Company has filed several patents for its pipeline of products including ones for the treatment of Parkinson’s Central Nervous System related disorders, eating disorders, and seizures in cats and dogs. Since its inception, the Company operates a legacy business that involves trading commodities and heavy equipment rental.
Throughout the Class Period, 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.
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.”
Following this news, the Company’s common stock ceased trading on the NYSE American, resulting in significant damages to the Company’s stockholders and the Class.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext. 9980