Gibbs Law Group Investigates Potential Securities Law Violations
OAKLAND, Calif.–(BUSINESS WIRE)–$TGLS #TGLS–Gibbs Law Group continues to investigate a potential Tecnoglass Class Action Lawsuit on behalf of investors who lost money in Tecnoglass, Inc. (NASDAQ: TGLS). Shares of Tecnoglass Inc. plummeted over 40% on Thursday, December 9, 2021, after Hindenburg Research published a 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. Investors who lost money in Tecnoglass, Inc. are encouraged to contact Gibbs Law Group for more information about their legal rights.
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
Tecnoglass’ financial reporting and revenue growth came into question when on Thursday, December 9, 2021, Hindenburg Research released a scathing report alleging that the Columbia-based glass and aluminum company has faked a “significant portion of its revenue,” has “consistently had a difficult time collecting revenue,” and has “numerous undisclosed related party transactions that call the company’s reported financial results into question.”
The Hindenburg report was published following a months-long investigation into Tecnoglass’ management and financial reporting history, and involved review of decades worth of court records, securities filings, property records, corporate registrations, and other documents. The report identified numerous red flags that could indicate faked revenue, including a days sales outstanding (DSO) of almost 100 days—nearly double its industry peers. Hindenburg research states that “high, persistent, uncollectible receivables balances,” can be a sign of fake revenue, especially when paired with other factors.
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, Jose and Christian Daes. 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. Given the numerous red flags uncovered in its investigation, Hindenburg Research calls for an independent auditor to “provide the investing public much needed current clarity about Tecnoglass’ subsidiaries, customers, acquisitions, and capital expenditures.”
Following this news, Tecnoglass’ stock plummeted over 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.”
This press release may constitute Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
CONTACT: EILEEN EPSTEIN