Shareholders Securities Fraud Class Action Lawsuit Filed Against Xethanol Corporation
A class action lawsuit has been filed in the United States District Court for the Southern District of New York, on behalf of shareholders who purchased, exchanged or otherwise acquired the common stock of Xethanol Corp. between January 31, 2006 and August 8, 2006, alleged Xethanol and certain of its officers and directors for issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder.
Particularly, the complaint alleges that Xethanol: (1) misrepresented management’s experience and standard of ethics; (2) omitted disclosing a series of related party transactions and association with investors who had alarming records of stock fraud and related shareholder abuses; (3) materially overstated the Company’s profitability by under-reporting the true costs associated with completing a biomass to ethanol production facility, and by failing to make proper adjustments to the Company’s financial reports; (4) lacked any reasonable basis to assert that the Company was operating according to plan or could achieve the near-term commercialization of biomass ethanol production, or achieve the guidance sponsored and/or endorsed by the Company; and (5) caused plaintiffs and other Class members to purchase Xethanol common stock at artificially inflated prices.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today.
Filed under Class Action, General Law
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