NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in PharmaCielo Ltd. (“PharmaCielo” or the “Company”) (Other OTC:PCLOF) of the May 5, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in PharmaCielo stock or options between June 21, 2019 and March 2, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/PCLOF. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased PharmaCielo securities between June 21, 2019 and March 2, 2020 (the “Class Period”). The case, Daniel Gabbard v. PharmaCielo Ltd. et al, No. 20-cv-02182 was filed on March 6, 2020, and has been assigned to Judge Philip S. Gutierrez.
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) PharmaCielo engaged in an undisclosed related party transaction with General Extract; (2) PharmaCielo engaged in misleading transactions and loans with General Extract and XPhyto; (3) PharmaCielo’s Research Technology and Processing Centre was never on-schedule and is delayed; (4) the Rionegro facility is located on a floodplain and contaminated with mold and pesticides from its previous tenants; (5) PharmaCielo’s Cauca Department land has never been utilized by the Company and is idle; and (6) as a result , Defendants’ public statements were materially false and/or misleading at all relevant times.
Specifically, on March 2, 2020, Hindenburg Research published a report (the “Report”) explaining that PharmaCielo had failed to disclose: (1) transactions with related parties; (2) misleading business transactions and loans with General Extract and XPhyto; (3) the delayed state of its Research Technology and Processing Centre’s construction; and (4) the poor state of its Rionegro Growing Facility.
On this news, PharmaCielo’s stock fell from a closing price of $1.42 per share over the next two trading days to $0.9068 per share on March 3, 2020— a $0.5132 or 36.14% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who 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 to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding PharmaCielo’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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