According to a press release dated December 31, 2009, the complaint charges Rentech and certain of its officers and directors ("Defendants") with violating the Securities Exchange Act of 1934. Rentech is a provider of “clean energy solutions” and developer of synthetic fuels and electric power from carbon-containing materials such as biomass, waste and fossil resources.
The complaint alleges that, throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s financial results and compliance with Generally Accepted Accounting Principles (“GAAP”). Specifically, the complaint alleges that defendants failed to disclose: (a) certain deposit payments associated with the Company’s forward contracts for natural gas purchases were incorrectly reported on Rentech’s balance sheets as inventory rather than deposits; (b) as a result, the Company’s financial results were overstated during the Class Period; (c) the Company had failed to properly recognize deposits on its balance sheets in violation of GAAP; (d) the Company lacked adequate internal and financial controls; and (e) as a result of the above, the Company’s financial statements during the Class Period were materially false and misleading at all relevant times.
On December 14, 2009 and December 15, 2009, Rentech announced that the Company had improperly reported certain deposit payments as inventory on its balance sheets in various filings with the SEC in 2008 and 2009. In response to the Company’s announcement, Rentech shares plunged to $1.27 a share on December 18, 2009, representing a 25% drop from the stock’s opening price on December 14, 2009.
On April 05, 2010, an order was issued by the court granting plaintiff, Eugene Boccardo’s Motion for Appointment of Lead Plaintiff and the law firm of Coughlin Stoia Geller Rudman & Robbins LLP was appointed Lead Counsel for the class.
On May 20, 2010, a Consolidated Amended Class Action Complaint For Violation Of The Federal Securities Laws was filed against the Defendants.
On March 23, 2011, a Stipulation of Settlement was entered onto the docket by the parties to fully, finally, and forever resolve, discharge, and settle the litigation.
The settlement was preliminarily approved on May 26, 2011, the Settlement Hearing shall be held before this Court on September 26, 2011, to determine whether the proposed Settlement of the Litigation on the terms and conditions provided for in the Stipulation of Settlement is fair, reasonable and adequate to the Class and should be approved by the Court.
On September 27, 2011, a Final Judgment and Order of Dismissal with Prejudice was entered by the court granting attorney’s fees and expenses to Lead Counsel.