In-flight entertainment suppliers Global Eagle Entertainment (GEE), already facing a number of challenges in terms of a Securities & Exchange Commission (SEC) investigation and a number of legal Class Action potential claims from shareholders, could find itself struck off the important NASDAQ stock exchange.
NASDAQ has said that GEE is late with its annual financial filings. NASDAQ has formally warned GEE that it has until May 19th to make full and complete financial results, or to submit a formal compliance plan. Back on February 21st GEE said it would not be able file its 2016 accounts on time, and would need to revise its formal guidance as to its anticipated 2017 revenues and profits.
Not helping matters is that GEE saw the abrupt departures in February of its CEO and CFO. The company’s shares are trading about 60 percent below its 52-week high.
The Class Actions against GEE allege that the company and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Another allegation is that the company and its board of directors breached their fiduciary duties to shareholders, grossly mismanaged the Company, and/or committed abuses of control in connection with the foregoing.