India Globalization Capital Facing Securities Lawsuit After Being Delisted from NYSE [UPDATE]
by Erin Shaak
Last Updated on November 12, 2021
Harris-Carr v. India Globalization Capital, Inc. et al
Filed: November 2, 2018 ◆§ 8:18cv3408
A proposed class action filed against India Globalization Capital and two top executives claims the parties' misleading statements regarding their business caused investors to be blindsided when the company was delisted from the NYSE American.
Maryland
Case Updates
November 12, 2021 – IGC Agrees to $1M Settlement
IGC has agreed to a $1 million deal that aims to resolve the case detailed on this page and a similar lawsuit with which it was consolidated in February 2019.
The parties have argued that the settlement is a “fair, reasonable, and adequate result” for investors, especially considering the “extremely modest” amount of insurance available—“only $1 million,” according to court documents—to cover the defendants’ legal fees and the costs of resolving the litigation.
The settlement, if approved, will cover all persons and entities who purchased or otherwise acquired IGC’s publicly traded common stock between September 26, 2018 and October 26, 2018.
Those covered by the deal should receive more information via an emailed or mailed notice sometime after the court approves the settlement. A settlement website will also be established where investors can learn more and file claims for their share of the settlement fund.
A proposed class action filed against India Globalization Capital and two top executives claims investors were blindsided when the company was delisted from the NYSE American, formerly called the American Stock Exchange. The suit argues that the company, which had developed cannabinoid-based alternative therapies, made misleading statements between June 21 and October 29, 2018, that deceived stockholders regarding its business operations.
Specifically, the case claims the defendants neglected to disclose to stockholders that the company had not only discontinued the business it conducted when it first began trading on the NYSE, but engaged in other business prospects that had not yet been commercially developed and, consequently, was no longer qualified to trade on the NYSE.
On October 29, 2018, the suit says, the NYSE announced that the company would be delisted and immediately suspended trading of its common stock, causing investors “significant damages.” According to the lawsuit, the NYSE noted that the “Company or its management have engaged in operations which, in the opinion of the Exchange, are contrary to the public interest.”
Before commenting, please review our comment policy.