Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Cemtrex, Inc.
Oklahoma City, OK (March 7, 2017) – On February 24, 2017, a securities class action lawsuit was filed in the United States District Court for the Eastern District of New York against Cemtrex, Inc. (NASDAQ: CETX). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is February 11, 2016 through February 22, 2017. More specifically, this litigation was filed because Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) over $1 million has been paid to notorious stock promoters since late 2015; (2) the entity paying for the stock promotion was owned by Cemtrex's founder, Aron Govil, and based out of Cemtrex's corporate headquarters; (3) senior executives engaged in undisclosed insider selling; and (4) Cemtrex retained a foreign accounting firm with a history of fraudulent endeavors to conduct its financial audits. Consequently, Defendants' statements about Cemtrex's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis throughout the Class Period.
Plaintiff seeks to recover damages on behalf of all Cemtrex, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, April 25, 2017 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Tue, March 7, 2017
by Nancy Beatty filed under