TORONTO, Dec. 22, 2015 /CNW/ – Morganti Legal, a cross-border law firm focused on representing investors, has commenced an investigation into potential violations of the securities laws by GuestLogix Inc. (TSX: “GXI” and CUSIP: 40163P) and MNP LLP, its auditor.
On December 16, 2015, GuestLogix published a press release revealing that an internal review had found that the Company may not have been following proper revenue recognition accounting policies in its historical financial statements. This internal review indicated that the effects of this improper revenue recognition are material. The Company’s has previously acknowledged that it had some weaknesses relating to recognition and recording of foreign currency transactions that impact internal and external reporting.
The disclosure’s impact on the market was immediate and significant, resulting in the Company’s share price dropping by 43% that very same day, on volumes more than 10 times the stock’s average trading volume for the previous three months.
Investors who purchased GuestLogix’s securities between March 27, 2013 and December 16, 2015, are encouraged to stay informed and contact Morganti Legal at (888) 226-0845 or by email at [email protected] for further information. You may learn more about Morganti Legal at www.morgantilegal.com.
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