Gibbs Law Group Investigates Potential Securities Law Violations
OAKLAND, Calif.–(BUSINESS WIRE)–$TGLS #TGLS–Shares of Tecnoglass Inc. plummeted over 40% on Thursday, December 9, 2021, after Hindenburg Research published a scathing report claiming that the glass and aluminum company has a history of numerous undisclosed related party transactions, and has faked a significant portion of its revenue. Gibbs Law Group is investigating a potential Tecnoglass Class Action Lawsuit on behalf of investors who lost money in Tecnoglass, Inc. (NASDAQ: TGLS).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Thursday, December 9, 2021, Hindenburg Research released a report alleging that Columbia-based glass and aluminum company Tecnoglass has faked a “significant portion of its revenue,” and has “consistently had a difficult time collecting revenue.” The report was released following a months-long investigation into the company’s management and financial reporting history, and involved review of decades worth of court records, securities filings, property records, and other documents. The report subsequently identified “serious red flags regarding management and numerous undisclosed related party transactions that call the company’s reported financial results into question.”
Tecnoglass went public in December 2013 via a SPAC merger, immediately cycling through three auditors within a one year period who identified “material weaknesses related to identification and reconciliation of related party transaction,” according to the Hindenburg report. Since then, Tecnoglass has allegedly engaged in various suspicious sales and acquisitions with “undisclosed related-party customers” owned by family members of Tecnoglass’ CEO and COO. The report also notes that the CEO and COO have ties to a Columbian drug cartel, and have faced related criminal charges in the past. According to the report, many of Tecnoglass’ related party transactions are still not fully or properly disclosed. For example, Tecnoglass has not yet disclosed who owns 40% of what is currently its largest recipient of exports.
Following this news, Tecnoglass’ stock dropped more than 40% in intraday trading on Thursday, December 9, 2021, causing significant harm to investors.
What Should Tecnoglass Investors Do?
If you invested in Tecnoglass, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Tecnoglass, Inc. has violated federal securities laws.
About Gibbs Law Group
Gibbs Law Group represents individual and institutional investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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