Period: Feb 11, 2016 to Feb 22, 2017
Lead Plaintiff Deadline: Apr 25, 2017 + Deadline passed
Summary of Case:
A securities class action has been filed against Cemtrex, Inc. (CETX) on behalf of persons and entities that acquired Cemtrex's securities between February 11, 2016, and February 22, 2017. This case has been filed in the USDC - NY (Eastern).
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose: (1) that Source Capital was at risk of having its registrations terminated for wrongdoing; (2) that the Company was utilizing paid stock promoters to artificially inflate the price of the Company's stock; (3) that Aron Govil, a member of the Company's Board of Directors, was secretly paying stock promoters via an undisclosed entity; (4) that Company insiders were selling their stock during the paid promotion, taking advantage of the artificially inflated stock price; (5) that the Company's purported audit firm claimed to operate at a location that was actually vacant; (6) that the controlling partner behind the Company's auditor was banned by the SEC and PCAOB for conducting fraudulent audits or reviews of public companies while performing little or no work and without being licensed; (7) that the Company's auditor was signing off on the Company's financial disclosures without conducting a proper review; and (8) that, as a result of the foregoing, Defendants' statements about Cemtrex's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.