According to a press release dated June 19, 2009, the complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s emergence from bankruptcy. The Company caused a press release to be issued on May 7, 2009, that stated the Company had emerged from bankruptcy. In the press release, the Company used the ticker symbol, SHSNQ to identify itself, which was the ticker symbol belonging to the Company’s old stock which would ultimately be cancelled. However, at the time the Company issued the press release the stock listed under the ticker symbol SHSNQ was still trading and had not been cancelled. As a result of defendants’ false and misleading statements, Shearson’s securities traded at artificially inflated prices during the Class Period, reaching a high of $.039 on May 8, 2009.
On May 11, 2009, the Company issued a press release stating among other things that the stock trading under the ticker symbol SHSNQ would be cancelled and that Shearson’s new stock would trade under a different ticker symbol.
On September 29, 2009, an order granting a a notice of dismissal of defendant Harry R. Kraatz. The plaintiff has previously dismissed Shearson Financial Network, Inc., so both defendants have been dismissed. Therefore, this case is terminated. The motion for appointment of lead plaintiff and approval of his selection of counsel is denied as moot.