SAN DIEGO and CORPUS CHRISTI, Texas, July 9, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that a federal securities fraud class action complaint was filed in the U.S. District Court for the Southern District of Texas. The complaint alleges that officers and directors of Uranium Energy Corp. (NYSE :UEC ) violated the Securities Exchange Act of 1934 between October 14, 2014 and June 17, 2015, by making materially false and misleading statements about Uranium Energy's business prospects. Uranium Energy engages in the exploration, extraction, and processing of uranium concentrates on projects in the United States and the Republic of Paraguay.
View this information on the law firm's Shareholder Rights Blog:
Uranium Energy Uses Undisclosed Paid Stock Promoters
According to the complaint, Uranium Energy officials failed to disclose that its stock achieved an unsustainable valuation through the use of paid stock promoters. On June 18, 2015, an article published by TheStreetSweeper.org reported that Uranium Energy was using undisclosed paid stock promoters to increase the value of Uranium Energy shares. The article stated, in part: "UEC has been running up on promotions coming from Twitter, Seeking Alpha authors and reportedly hype paid by the company itself." Additionally, a report by hotstocked.com stated that Uranium Energy has caused to be published at least eight separate stock promotions, for which the company, or third parties controlled by the company, paid over $200,000.
On June 19, 2015, Uranium Energy issued a press release stating that the article published by TheStreetSweeper.org had no merit, but failed to address the allegations related to the undisclosed paid stock promotions. As a result, shares of Uranium Energy dropped $0.62, or over 25.6%, to close at $1.80 on June 19, 2015. Over two trading days, shares fell $0.80, or over 30.7%.
Uranium Energy 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, DDonahue@robbinsarroyo.com, 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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SOURCE Robbins Arroyo LLP