SAN DIEGO & BETHESDA, Md.–(BUSINESS WIRE)–$IGC #ClassAction–Shareholder rights law firm Robbins
Arroyo LLP announces that a purchaser of India Globalization
Capital, Inc. (AMEX: IGC) has filed a derivative complaint against the
company’s officers and directors for breaches of fiduciary duty from
October 25, 2017 through the present. India Globalization develops and
commercializes cannabis-based therapies.
View this information on the law firm’s Shareholder Rights Blog:
India Globalization Accused of Inflating Stock Price
According to the complaint, since 2017, India Globalization had touted
its business prospects and competitive advantage in the medical cannabis
industry. However, it had just taken advantage of the cryptocurrency and
cannabis-stock craze to send its stock soaring up to $13 per share in
October 2018. Executives promoted the usage of blockchain technology and
development of cannabis-infused energy drink to inflate the stock price.
On October 2, 2018, Citron Research began tweeting about the company and
its lack of product. The following day, its stock price plummeted over
30% to close at $8.85 per share. On October 29, 2018, the NYSE announced
the beginning of the delisting process for India Globalization because
it had substantially discontinued the business that it conducted when it
first started trading. A November 2018 MarketWatch article revealed more
issues with the company, including litigation proceedings against a key
staff and a stock promoter associated with it. On this news, its stock
fell over 20% to close at $0.43 per share on November 27, 2018, a 96.7%
decline from its closing price on October 2, 2018.
India Globalization Capital Shareholders Have Legal Options
Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Leonid Kandinov at
(800) 350-6003, [email protected],
or via the shareholder
information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in 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. Sign up for our FREE
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Attorney Advertising. Past results do not guarantee a similar outcome.