NEW YORK, April 5, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Cemtrex, Inc. ("Cemtrex" or the "Company") (NASDAQ: CETX) of the April 25, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased Cemtrex securities between February 11 2016, and February 22, 2017 (the "Class Period"). The case, Cullinan v. Cemtrex, Inc. et al, No. 2:17-cv-01067 was filed on February 24, 2017, and has been assigned to Judge Joan Marie Azrack.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Source Capital was at risk of having its registrations terminated for wrongdoing; (2) Cemtrex was utilizing paid stock promoters to inflate its stock price; (3) that Aron Govil, a director of the Company, was secretly paying stock promoters; (4) Company insiders engaged in insider selling; (5) the Company's purported audit firm claimed to operate at a location that was vacant; (6) the controlling partner behind the Company's auditor was banned by the Securities and Exchange Commission ("SEC"), among others, for conducting fraudulent audits or reviews; (7) the Company's auditor was signing off on the Company's financial disclosures without conducting a proper review; and (8) as a result, Cemtrex's statements about its business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
Specifically, on February 17, 2017, the status of Source Capital's FINRA and SEC registrations were listed as "Termination Requested." On this news, Cemtrex's share price fell from $5.77 on February 17, 2017 to a closing price of $5.12 on February 21, 2017—a $0.65 or a 11.27% drop.
Then, on February 22, 2017, an article was published on SeekingAlpha entitled "Cemtrex: Documents And Photos, All Signs Point To Deception And Failure." On this news, Cemtrex's share price fell from $5.12 on February 21, 2017 to a closing price of $3.40 on February 22, 2017—a $1.72 or a 33.59% drop.
Request more information now by clicking here: www.faruqilaw.com/CETX . There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Cemtrex's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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