GlobalSCAPE Securities Litigation Settlement

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GlobalSCAPE Securities Litigation Settlement
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If You Purchased shares of GlobalSCAPE on the New York Stock Exchange

From March 3, 2016 Through August 7, 2017,

You Could Be Affected By A Proposed Class Action Settlement

 

The information contained on this web page is only a summary of information presented in more detail in the Notice of (I) Pendency of Class Action and Proposed Settlement; and (II) Settlement Hearing; and (III) Motion for Attorneys’ Fees and Expenses (the “Notice”), which you can access by clicking here.  Since this website is just a summary, you should review the Notice for additional details.

 

·         Your individual recovery from the Settlement Fund will depend on various factors. Recovery will be shared, pro rata, among all Class Members who submit valid and timely Proof of Claims and who purchased GlobalSCAPE common stock from March 3,2016 through August 7, 2017, both dates inclusive (the “Class Period") and suffered a recognized loss. Lead Counsel (defined below) estimates that approximately 3.2 million shares of GlobalSCAPE common stock were purchased or otherwise acquired and potentially damaged during the Class Period.  Based on the above, the average recovery per share of GlobalSCAPE common stock under the Settlement will be approximately $.44 per share, before the deduction of attorneys' fees, costs, expenses, and a compensatory award to Lead Plaintiffs, as approved by the Court (defined below). The actual recovery per share will depend on (1) the number of claims filed; (2) whether members of the Class either sold their shares during the Class Period, or held their shares past the end of the Class Period; (3) administrative costs, including the costs of notice, for the Action; and (4) the amount awarded by the Court for attorneys' fees and expenses, and any compensatory award to Lead Plaintiff.

 

·         The principal reason for Lead Plaintiff’s consent to the Settlement is to provide a benefit to the Class. Lead Plaintiff’s damages experts concluded that the likely total recoverable damages in this Action were between $1.5 million and $3.0 million. This Settlement recovers either 93% or 54% of the recoverable damages, depending on the resolution of certain legal issues. This benefit must be compared to the risk that no recovery might be achieved after contested motions (including a likely Motion to Dismiss and Motion for Summary Judgment), a contested trial, and likely appeals, possibly years into the future. Lead Counsel believed that the claims were meritorious, would survive these hurdles and would ultimately result in a verdict for the Class, but Defendants believed otherwise and maintained defenses to the allegations, and that Defendants engaged in no wrongdoing whatsoever. Lead Plaintiff and Lead Counsel recognized that especially here, where a jury would be required to listen to multiple experts presenting competing views, the jury could find in Defendants' favor. In addition, Lead Plaintiff and Lead Counsel recognized that even if they prevailed, they might not succeed in winning a jury verdict of the size of the Settlement Amount. The Settlement therefore enables the Class to recover a substantial amount without incurring any additional risk or costs.

 

 

 

 

Your Legal Rights and Options in this Settlement

SUBMIT A PROOF OF CLAIM

The only way to receive a payment.

EXCLUDE YOURSELF

Receive no payment. This is the only option that allows you to participate in another lawsuit against Defendants or the Defendant Released Persons concerning the legal claims being released in the Action. The exclusion deadline is November 27, 2018.

OBJECT

You may write to the Court if you do not like anything about the Settlement including the plan of allocation for the Settlement Funds as set forth herein or the Fee Application. The objection deadline is November 27, 2018.

GO TO A HEARING

You may ask to speak in Court about the fairness of the Settlement. The deadline to submit a notice of intention to appear at the Final Approval Meeting is November 27, 2018.

DO NOTHING

Receive no payment and be prohibited from asserting any Plaintiffs' Settled Claims against Defendants or any Defendant Released Persons.

 

Please consult this website for any updates on deadlines.

 
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