Global Digital Solutions Inc. (OTCMKTS:GDSI) is the subject of a class action lawsuit over claims it defrauded shareholders by issuing false and misleading press releases. Rosen Law Firm has already opened investigations into the matter, on behalf of shareholders who purchased the stock on or before August 12, 2016.
The Securities and Exchange Commission has already charged the company’s CEO Richard J. Sullivan and former CFO David A. Loppert for publishing the misleading press releases. In the releases, the two are accused of alleging that Global Digital Solutions was a leader in cyber arms manufacturing and technology solutions provider.
The SEC also accuses the two executives of falsifying Global Digital Solutions revenue projections. The charges arise from the fact that the company has no immediate customers and has never manufactured any cyber arms let alone provide security technology services or solutions.
Founded in New Jersey as a beauty supply firm, Global Digital Solutions, later on, tweaked its business model by transitioning to become a wireless data firm. It has since rebranded itself into a gun technology firm. Regulators are currently investigating the company for claiming it was in the process of buying one of the country’s largest arms maker for $1 billion. The claims made in 2014 also saw the company forecast that it was on course to generate $60 million to $75 million in the year.
The SEC on its charge sheet insists that the purported $1 billion acquisition was inexistent, therefore; the company was not in any way going to generate the purported revenues. The SEC is currently seeking civil charges against Mr. Sullivan and the former CFO. The agencies also want the two barred from ever participating in future penny stocks following the misleading statements.
Rosen Law Firm, on the other hand, is seeking damages for the losses that shareholders might have incurred on basing their investments on the misleading statements issued by Global Digital Solutions Inc. (OTCMKTS:GDSI).
HERITAGE PRINTING NPV (OTCMKTS:HAGE) Files First Quarterly Report Since Name Change
HERITAGE PRINTING NPV (OTCMKTS:HAGE) has filed its quarterly report for the 2Q2016, with no revenues and a net loss of $1,674. However, it should be remembered that HAGE is only a developmental stage company, which changed its corporate name twice, in less than a year. The company was previously operating under the name Heritage Action Corp, since December 10, 2015 and changed its name to Heritage Printing Technology Corp. HAGE has a long history of changing its corporate name and business.
In the quarterly report, the company revealed that it had incurred a total of $642,218, in accumulated losses, since inception. As of June 30, 2016, Heritage had no cash and a total of $15,368 in liabilities. Moreover, the company plans to secure funding for future operations from shareholders, management and equity or debt financing. At the end of the 2Q2016, HAGE had just one note payable, worth $10,000, to Horizon Management Corp. The note is non-convertible and does not carry any interest rate.