SAN DIEGO & BETHESDA, Md.--(BUSINESS WIRE)--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:
https://www.robbinsarroyo.com/india-globalization-capital-jun-19/
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, LKandinov@robbinsarroyo.com, 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 portfolio monitoring service, Stock Watch.
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