Global Tech Industries Group, Inc. (OTCMKTS:GTII) will be explaining illegal trading of its stock in the company’s latest lawsuit.
The Nevada corporation announced in February that its board of directors has authorized management to move forward with appropriate legal action in connection with what it believes to be illegal trading activity in the Company’s shares.
Global Tech Industries previously disclosed, it has retained the legal teams of Christian Levine Law Group, LLC, (“Levine”) and Warshaw Burstein, LLP, (“Warshaw”), both of whom have specific expertise in stock fraud litigation, to handle the legal actions for the Company.
The company made the following announcement:
“It appears that certain market makers have failed to post regular or continuous proprietary quotations that are at or near the market on both sides and that are communicated and represented such that they are widely accessible to investors and other broker-dealers.
When market makers fail to meet this requirement, as well as other applicable requirements, it can bring into question whether they are engaging in “bona fide market making” and can avail themselves to any “locate” exemptions afforded to bona fide market makers when executing short sales.
Further, in a recent administrative proceeding between Alpine Securities Corporation (“Alpine”) and the National Securities Clearing Corporation (“NSCC”) before the U.S. Securities and Exchange Commission, it was disclosed that the NSCC imposed a “Backtesting Charge” against Alpine (which action was contested by Alpine) due to deficiencies in Alpine’s “Required Fund Deposit” with NSCC “. . . that were attributed to net short portfolios in several stocks, with the ‘top driver being a concentrated short position in GTII’”, which is, obviously, a cause of concern for the Company..”
Latest GTII Lawsuit Update
A document by Warshaw Burstein, LLP published on Tuesday writes to Judge Marrero regarding the exchange of letters between the plaintiff and defendant.
“The parties have exchanged letters regarding a potetial motion to dismiss the Compalined, filed March 13, 2023, and GTII now seeks to leave to file an ammended complaint by July 7, 2023,” the letter stated.
“GTII intends to file an amended complaint that explains — with more clarity and specifically — the method, means, mechanics, and motivation of Defendant’s schemes to manipulate the share price of GTII’s common stock downward, as well as the manner through which such manipulation harmed GTII.
The additional time sought by GTII is necessitate by both the complexity of the claims, in order to fully address the issues raised by defendants in their pre-motion letter so that no further amendment will be necessary; and certain medical issues that I am currently experiencing and medical treatment that I expect to receive in the month of June.
We have met and conferred with counsel for defendants who don’t object and take no position on GTII’s request for leave to file an Amended Complaint by the proposed deadline.”
The legal action comes after Genius Group CEO Roger Hamilton urged CEOs to fight against naked shorts, the illegal practice of shorting stock without owning or having to return the shares back to a lender.
“They’re predators. They’re doing something illegal, and we want it to stop”, says GNS CEO Roger Hamilton.
The Board of Directors (the “Board”) of Genius Group Limited (NYSE American: GNS), a leading entrepreneur edtech and education group, approved at a meeting of the Board held on Wednesday 18th January 2023, an action plan to address illegal short selling of its stock.
GTII stock is down -7% this year-to-date and more than -36% in the past year.
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