| Company: | Global Geophysical Services, Inc. |
| Ticker Symbol: | GGS |
| Class Period: | Feb-7-11 to Mar-17-14 |
| Date Filed: | Mar-21-14 |
| Lead Plaintiff Deadline: | May-20-14 |
| Court: | Southern District of Texas |
| Allegations: | |
Global and its subsidiaries provide an integrated suite of seismic data solutions to oil and gas exploration and production companies worldwide. The Company's seismic data solutions primarily include seismic data acquisition, microseismic monitoring, data processing, and interpretation services, which deliver data that enables the creation of high resolution images of the earth's subsurface, and reveals complex structural and stratigraphic details.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, prospects and performance. Specifically, during the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) for the years 2009 through the first three quarters of 2013, the Company's financial statements contained material misstatements and required restatement; (ii) the Company improperly recognized revenues during the relevant period; (iii) there were material weaknesses in the Company's internal controls; and (iv) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On March 17, 2014, after the close of trading, GGS announced that its financial statements and related auditors' reports for the fiscal years ended December 31, 2012, 2011, 2010, and 2009, and the first, second and third quarters of 2013 should no longer be relied upon because of accounting errors resulting from material weaknesses in the Company's internal controls. GGS further announced that it would conduct a thorough review of its financial statements from the foregoing years, and restate its consolidated financial statements from 2011 onward, as well as selected financial data for the 2009 and 2010 fiscal years in its 2013 Annual Report on Form 10-K (2013 Annual Report).
As a result of these financial reporting issues, GGS indicated that it will not timely file its 2013 Annual Report.
Simultaneously, GGS also announced that it is suspending payment of dividends on its Series A Preferred Stock, including the dividend payment scheduled for March 31, 2014, while certain events of default under its September 2013 Financing Agreement continue.
Upon the above news, the price of the Company's Series A Preferred Stock has dropped over 70% in trading since March 18, 2014, while the price of the Company' common stock has dropped over 58% since March 18, 2014.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
