SAN DIEGO and NEW YORK, April 22, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of ForceField Energy Inc. (NASDAQCM: FNRG) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between September 16, 2013 and April 15, 2015. ForceField through its subsidiaries, designs, distributes, and licenses alternative energy products and technologies in China and the United States.
According to the complaint, defendants made materially false and misleading statements regarding the company's business and operational compliance policies. Specifically, the complaint alleges that ForceField management was aware of, and in fact reviewed, articles written by paid stock promoters touting their company and the value of their stock. These articles, which were designed to prop up the share price and volume so that companies could issue stock to raise money, failed to disclose the authors had been compensated for their articles and the existing relationship between the authors and ForceField. The complaint further alleges that ForceField failed to disclose its executives' prior relationships with fraudulent companies.
ForceField stock declined $2.97 per share, or approximately 39%, to close at $4.74 per share on April 16, 2015, following a Seeking Alpha article in which the company's practices were revealed. On April 20, 2015, the company announced that its chairman, Richard St. Julien, was arrested and had resigned. Nasdaq has since halted trading of ForceField stock.
ForceField Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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