BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased First Choice Healthcare Solutions, Inc. (“First Choice” or the “Company”) (OTC: FCHS) securities between April 1, 2014 and November 14, 2018, inclusive (the “Class Period”). First Choice investors have until May 28, 2019 to file a lead plaintiff motion.
Investors suffering losses on their First Choice investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On November 14, 2018, both a criminal indictment and civil action were filed by the U.S. Department of Justice and Securities and Exchange Commission respectively against then-Chief Executive Officer, President, and Board Chairman Christian Romandetti, Sr., along with other alleged co-conspirators. Romandetti was charged regarding his connections with the arrangement of a multi-million dollar pump-and-dump scheme in which the price and volume of First Choice shares was falsely controlled through artificial generation of trading volume and price movements, as well as materially false representations and omissions in communications with investors.
On this news, shares of First Choice fell $0.66 per share, or over 65%, to close at $0.35 on November 15, 2018, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) defendants retained Elite Stock Research, Inc. to falsely promote the Company to materially inflate the price of First Choice stock; (2) the Company’s CEO participated and personally profited from a scheme to materially inflate the price of First Choice securities through an unlawful, paid promotional campaign; (3) defendants were in violation of First Choice’s internal compliance policies by participating in the pump and dump scheme; and (4) a primary cause of fluctuations in First Choice’s stock price was the unlawful campaign, in which Romandetti directly participated, that caused the price of First Choice stock to be inflated while at the same time allowed others to dump their First Choice stock for profit.
If you purchased shares of First Choice, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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