NEW YORK, May 22, 2015 /PRNewswire/ -- Pomerantz LLP has filed a class action lawsuit against ForceField Energy Inc. ("ForceField" or the "Company")(NASDAQ: FNRG) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 15-cv-3141, is on behalf of a class consisting of all persons or entities who purchased Forcefield securities between October 16, 2013 and April 15, 2015, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased ForceField securities during the Class Period, you have until June 16, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
ForceField is a designer, distributor and licensee of alternative energy products and solutions. The Company distributes light emitting diode ("LED") commercial lighting and fixtures. It also uses waste heat from manufacturing source to provide clean electricity.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business and operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) some of the reports issued by promoters paid by the Company pretended to be independent authors, did not disclose their compensation, and the content of the reports were reviewed by ForceField's management prior to publication; (2) members of its management have a troubling history with fraudulent companies; and (3) as a result of the foregoing, ForceField's public statements were materially false and misleading at all relevant times.
On March 20, 2014, Fortune.com published the article, At financial news sites, stock promoters make inroads. The article discussed the role of stock promoters, specifically the DreamTeamGroup, and how stock promoter's must reveal compensation for these types of articles.
As a result of this partial disclosure, shares of ForceField fell $0.53 per share or almost 9% over the next two days to close at $5.65 per share on March 21, 2014.
On April 15, 2015, SeekingAlpha.com published an article entitled, Forcefield Energy: Undisclosed Promotions And Management Connections to Past Fraud, which further revealed Defendants' undisclosed promotion and control and knowledge over DreamTeamGroup activities. The Seeking Alpha article also disclosed the unscrupulous backgrounds of the Individual Defendants that they were required, but failed to, disclose in the Company's SEC filings.
This adverse information caused the price of ForceField stock to tumble $2.97 per share, or approximately 39%, over the next two days to close at $4.74 per share on April 16, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP