Global Power Equipment Group Inc. (OTCMKTS:GLPW) Files An 8-K Other Events

ME Staff 8-k
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Global Power Equipment Group Inc. (OTCMKTS:GLPW) Files An 8-K Other Events
Item 8.01 Other Events.

As previously reported, stockholders of Global Power Equipment Group Inc. (the “Company”) filed a putative class action against the Company and three of its former officers in the United States District Court for the Northern District of Texas. Plaintiffs brought claims under Sections 10(b)and 20(a)of the Securities Exchange Act of 1934, as amended, on behalf of a purported class of stockholders who acquired shares of the Company during the period from September7, 2011, through May6, 2015. On May1, 2017, following the Company’s March15, 2017 restatement, plaintiffs filed a Second Amended Complaint. The Second Amended Complaint alleged that a September7, 2011 current report on Form8-K and every quarterly report on Form10-Q and annual report on Form10-K filed by the Company from March14, 2012 through May6, 2015 contained false and misleading information.

On June26, 2017, the Company and the other defendants moved to dismiss the Second Amended Complaint in its entirety. On December27, 2017, the Court issued a Memorandum Opinion and Order granting the motion. The Court found that, with respect to each of the defendants, plaintiffs failed to plead facts supporting a strong inference of scienter, or the required intent to deceive, manipulate or defraud, or act with severe recklessness. The Court also ruled that plaintiffs failed to allege loss causation with regard to certain alleged misstatements made in connection with the 2011 sale of the Company’s Deltak, L.L.C. subsidiary. Finally, the Court also dismissed plaintiffs’ “control person” claims under Section20(a)in light of the Court’s dismissal of the underlying Section10(b)claims.

The Court granted plaintiffs leave to further amend their complaint to attempt to address the defects identified in the Court’s Memorandum Opinion and Order. Plaintiffs have until January15, 2018, to file an amended complaint. Alternatively, if plaintiffs determine not to file a further amendment, they may appeal the District Court’s decision to the United States Court of Appeals for the Fifth Circuit.


About Global Power Equipment Group Inc. (OTCMKTS:GLPW)

Global Power Equipment Group Inc. is a design, engineering and manufacturing company providing an array of equipment and services to the global power infrastructure, energy and process industries. The Products segment includes two primary product categories: Mechanical Solutions, which designs, engineers and manufactures a portfolio of equipment for utility-scale natural gas turbines, and Electrical Solutions, which provides custom-configured electrical houses and generator enclosures for various industries. The Services segment provides lifecycle maintenance, repair, on-site specialty support, outage management, construction and fabrication services for the power generation, industrial, chemical/petrochemical processing, and oil and gas industries. Its products portfolio span from auxiliary equipment for gas turbines to small, high alloy parts, such as seals, shims and brackets. It also offers a range of services that have been managing plant asset value.