LOS ANGELES--(BUSINESS WIRE)--
Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the United States District Court for the Eastern District of New York on behalf of a class (the “Class”) consisting of persons and entities that acquired Cemtrex, Inc. (“Cemtrex” or the “Company”) (NASDAQ: CETX) securities between February 11, 2016 and February 22, 2017, inclusive (the “Class Period”).
If you are a member of the Class described above, you may move the Court no later than 60 days from the date of this notice, to serve as lead plaintiff. Please contact Lesley Portnoy at 888-773-9224 or 310-201-9150, or at [email protected] to discuss this matter.
On February 22, 2017, Seeking Alpha published an article on Cemtrex revealing that over $1 million has been paid to notorious stock promoters to promote Cemtrex stock. The report further disclosed that Cemtrex’s founder Aron Govil has secretly paid promoters behind imploded stock frauds like Forcefield Energy and Code Rebel via an undisclosed entity, and insiders of Cemtrex have been heavily selling Company shares during the paid promotion without disclosing these sales. On this news, shares of Cemtrex fell sharply during intraday trading on February 22, 2017.
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 shares of Cemtrex during the Class Period you may move the Court no later than 60 days from the date of this notice to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of Glancy Prongay & Murray LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, at (310) 201-9150, by e-mail to [email protected], or visit our website at www.glancylaw.com.
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