WILMINGTON, Del.--(BUSINESS WIRE)--Rigrodsky & Long, P.A.
- Do you, or did you, own shares in Poseidon Concepts Corp. (OTC PINK: POOSF)?
- Did you purchase your shares prior to May 9, 2012, or between May 9, 2012 and February 14, 2013, inclusive?
- Did you lose money in your investment in Poseidon Concepts Corp.?
- Do you want to discuss your rights?
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the common stock of Poseidon Concepts Corp. (“Poseidon” or the “Company”) (OTC PINK: POOSF) between May 9, 2012 and February 14, 2013, inclusive (the “Class Period”), alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of Poseidon during the Class Period, or purchased shares prior to the Class Period and still hold Poseidon, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to firstname.lastname@example.org, or at: http://www.rigrodskylong.com/investigations/poseidon-concepts-corp-poosf.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that: (a) the Company improperly recorded approximately $95 million to $106 million as revenue in the Company’s financial statements; (b) the Company improperly recorded $94 million to $102 million as accounts receivable in the Company’s financial statements; and (c) that as a result, the first, second and third quarter 2012 financial statements would need to be restated and could not be relied upon by investors, along with all previous guidance with respect to the Company’s business. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on May 9, August 8, and November 14, 2012, Poseidon issued materially false and misleading press releases announcing the Company’s financial and operating results. Further, the results issued in the November 14, 2012 press release were below market expectations for the Company, and as a result, shares in Poseidon stock fell approximately 62% from its previous closing price, closing at $4.95 per share on November 15, 2012.
Then, on December 27, 2012, Poseidon issued a press release announcing the formation of a Special Committee to evaluate and resolve various issues stemming from the Company’s write-off of some of its accounts receivable and evolving business strategy. The findings of the Special Committee, announced in a press release on February 14, 2013, revealed to the public news of the improperly recorded revenue and accounts receivable, as well as the Company advising that all previous guidance should no longer be relied upon. On this news, shares in Poseidon fell almost 70%, closing at $0.28 per share on February 14, 2013, from a close of $0.89 per share on February 13, 2012, on volume of over 15 million shares.
If you wish to serve as lead plaintiff, you must move the Court no later than April 23, 2013. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed 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.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
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