An investor in NASDAQ:CETX shares filed a lawsuit over alleged Securities Laws violations by Cemtrex Inc in connection with certain allegedly false and misleading.
Investors who purchased shares of Cemtrex Inc (NASDAQ:CETX) have certain options and for certain investors are short and strict deadlines running. Deadline: April 25, 2017. NASDAQ:CETX investors should contact the Shareholders Foundation at [email protected] or call +1(858) 779 – 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Cemtrex Inc (NASDAQ:CETX) common shares between February 11, 2016 and February 22, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 11, 2016 and February 22, 2017, the Defendants failed to disclose that Cemtrex’s banker Source Capital was at risk of having its registrations terminated for wrongdoing, that Cemtrex Inc was utilizing paid stock promoters to artificially inflate the price of the Company’s stock, that Aron Govil, a member of the Company’s Board of Directors, was secretly paying stock promoters via an undisclosed entity, that Company insiders were selling their stock during the paid promotion, taking advantage of the artificially inflated stock price, that the Company’s purported audit firm claimed to operate at a location that was actually vacant, 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, that the Company’s auditor was signing off on the Company’s financial disclosures without conducting a proper review, and 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.
Farmingdale, NY based Cemtrex, Inc. is a diversified technology company, which provides solutions to industrial and manufacturing needs. Cemtrex Inc reported that its Total Revenue rose from $56.89 million for the 12 months period that ended on September 30, 2015 to $93.70 million for the 12 months period that ended on September 30, 2016 and that its Net Income for those respective time periods increased from $2.84 million to $4.99 million.
Shares of Cemtrex Inc (NASDAQ:CETX) grew from $1.65 per share in February 2016 to as high as $8.41 per share in January 2017.
On February 22, 2017, an article was published on Cemtrex Inc revealing that over $1 million has been paid to stock promoters to promote Cemtrex Inc. The report alleged that Cemtrex’s founder Aron Govil was secretly paying promoters behind imploded frauds like Forcefield Energy and Code Rebel via an undisclosed entity and that insiders of Cemtrex Inc have been heavily selling shares during the paid promotion without disclosing them. Shares of Cemtrex Inc (NASDAQ:CETX0 declined to as low as $2.76 per share on February 22, 2017.
On March 13, 2017, NASDAQ:CETX shares closed at $3.45 per share.
Those who purchased NASDAQ:CETX shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego
The post NASDAQ:CETX Shareholder Notice: Lawsuit Alleges Misleading Statements by Cemtrex Inc appeared first on GroundReport.
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