Shareholder Investigation of India Globalization
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India Globalization Capital, Inc. (IGC) Accused of Inflating Stock Price
According to the complaint against the company’s officers and directors for breaches of fiduciary duty from October 25, 2017 through the present, since 2017, India Globalization Capital, Inc. (IGC) had touted its business prospects and competitive advantage in the medical cannabis industry. However, it had just taken advantage of the cryptocurrency and cannabis-stock craze to send its stock soaring up to $13 per share in October 2018. Executives promoted the usage of blockchain technology and development of cannabis-infused energy drink to inflate the stock price. On October 2, 2018, Citron Research began tweeting about the company and its lack of product. The following day, its stock price plummeted over 30% to close at $8.85 per share. On October 29, 2018, the NYSE announced the beginning of the delisting process for India Globalization because it had substantially discontinued the business that it conducted when it first started trading. A November 2018 MarketWatch article revealed more issues with the company, including litigation proceedings against a key staff and a stock promoter associated with it. On this news, its stock fell over 20% to close at $0.43 per share on November 27, 2018, a 96.7% decline from its closing price on October 2, 2018.