According to a complaint filed June 17, 2011, Plaintiffs alleg claims under Sections 11, 12, and 15 of the Securities Act of 1933 ("Securities Act") on behalf of all persons or entities who purchased shares of the underlying securities. The complaint alleges that pursuant to solicitations by the sole distributor of the securities contained materially false and misleading statements and omitted to state facts necessary to make the statements made therein not materially misleading.
The allegations of misleading information included statements in the registration statements and prospectuses, where the documents failed to disclose material information concerning the valuation of shares of related securities that were highly material to investors' decisions to invest. Further, these documents failed to disclose that the valuation of the underlying securities did not adhere to rules adopted by FINRA pertaining to such valuations. Further, the Plaintiffs allege that the broker of the securities did not properly disclose the capital structure of the securities, prior decline in value of related securities, and the broker’s lack of due diligence prior to recommending the purchase of the underlying securities.
On December 12, 2011, the Court issued an Order consolidating cases 11-cv-03094 and 11-cv-05546 with the current case. The Court also approved the appointments of lead plaintiffs and lead counsel.
On February 17, 2012, Plaintiffs filed a consolidated class action complaint.
On March 13, 2012, the Court issued an Order consolidating case number 12-cv-00782 with the current case. The Court also approved the appointment of interim class co-counsel.
On April 3, 2013, the Court issued an Order granting the Defendants' motions to dismiss with prejudice. The Clerk of the Court was directed to close this case. On April 12, the plaintiffs gave Notice of their appeal of the above Order.