Case Page

 

Case Status:    DISMISSED    
On or around 09/30/2010 (Notice of voluntarily dismissal)

Filing Date: November 10, 2009

According to a press release dated November 10, 2009, The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, the complaint alleges that defendants failed to disclose the following adverse facts, among others: (i) VeraSun was, in part, a speculative commodities trader in addition to an ethanol producer; (ii) VeraSun engaged in speculative and risky derivate transactions that exposed the Company to substantial financial and liquidity risk; (iii) VeraSun experienced substantial loses on speculative derivative transactions causing margin pressures on the Company; (iv) as a result of margin pressures from bad speculative derivative transactions, the Company sold out of a large short position in corn and incurred substantial losses; (v) the Company entered into highly risky “accumulator” contracts that obligated VeraSun to purchase increasing amounts of corn after the price of corn fell in price per bushel; and (vi) VeraSun’s financial condition and especially its liquidity were negatively impacted as a result of speculative commodity transactions, ultimately causing the Company to file for bankruptcy.

On September 16, 2008, VeraSun announced that it commenced a public offering of 20 million shares of its common stock to raise money for “general corporate purposes.” The true purpose of this public offering was to raise capital in an effort to prevent a disastrous impact from the huge losses experienced by the Company as a result of its speculative trading and risky bets on the price of corn. In response to the Company’s announcement on September 16, 2008, shares of the Company’s stock fell $3.81 per share, or 70%, from a close of $5.22 per share before the announcement, to close at $1.41 per share on September 17, 2008, on extremely heavy trading volume.

On January 29, 2010, the Plaintiff’s stipulation and order appointing lead plaintiffs and approving lead plaintiffs' selection of lead and liaison counsel was granted by the Court.

On March 15, 2010, a consolidated class action complaint for violations of the federal securities laws was filed by the lead plaintiffs against the defendants.

On September 01, 2010, the Court granted the defendants motion and the case was dismissed without prejudice and with leave to amend.

On September 29, 2010, this action was dismissed with prejudice and the Court ordered that each party bear its own costs.

COMPANY INFORMATION:

Sector: Basic Materials
Industry: Chemical Manufacturing
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: VSUNQ
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 09-CV-09338
JUDGE: Hon. Shira A. Scheindlin
DATE FILED: 11/10/2009
CLASS PERIOD START: 03/12/2008
CLASS PERIOD END: 09/16/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@csgrr.com/
  2. Dyer & Berens LLP (former)
    682 Grant Street, Dyer & Berens LLP (former), CO 80203-3507
    303.861.1764 303.861.1764 · contact@dyerberens.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 09-CV-09338
JUDGE: Hon. Shira A. Scheindlin
DATE FILED: 03/15/2010
CLASS PERIOD START: 03/12/2008
CLASS PERIOD END: 09/16/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barroway Topaz Kessler Meltzer & Check, LLP (Radnor)
    280 King of Prussia Road, Barroway Topaz Kessler Meltzer & Check, LLP (Radnor), PA 19087
    610.667.7706 610.667.7706 · info@btkmc.com
  2. Barroway Topaz Kessler Meltzer & Check, LLP (San Francisco)
    580 California Street, Suite 1750, Barroway Topaz Kessler Meltzer & Check, LLP (San Francisco), CA 94104
    415.400.3000 415.400.3000 · info@btkmc.com
  3. Cohen Milstein Sellers & Toll PLLC (New York)
    88 Pine Street, 14th Floor, Cohen Milstein Sellers & Toll PLLC (New York), NY 10022
    212.838.7797 212.838.7797 ·
  4. Gold Bennett Cera & Sidener LLP
    595 Market Street, Suite 2300, Gold Bennett Cera & Sidener LLP, CA 94105-2835
    800.778.1822 415.777.5189 · info@gbcsf.com
No Document Title Filing Date