According to the law firm press release, Kior is a renewable biofuels manufacturer that has developed a proprietary technology platform to convert cellulose and other plant-derived materials into renewable crude oil that is processed into gasoline, diesel and other fuels. In 2012, the Company completed its first commercial scale biofuel facility in Columbus, Mississippi.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was not on track to produce commercially meaningful quantities of biofuel at the Columbus facility in the amounts projected by management; (2) the Company lacked adequate internal and financial controls over its calculation and forecasting of production levels at the Columbus facility; and (3) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On August 8, 2013, the Company disclosed to investors that it had only shipped 75,000 gallons of biofuel during the second quarter of 2013 – far below the 300,000-500,000 gallons Defendant Cannon had promised investors less than three months before. On this news, Kior shares fell $2.12 per share or over 44%, over the course of the next six trading sessions, from a close of $4.76 per share on August 7, 2013 to a close of $2.62 per share on August 15, 2013.
On November 25, 2013, the Court issued an Order appointing lead plaintiffs and approving the selection of lead counsel.
An amended complaint was filed on January 27, 2014.
A second amended complaint was filed on May 27, 2014.
Pursuant to a bankruptcy filing of the issuer defendant, this case was ordered stayed on January 5, 2015. Due to the bankruptcy, the earlier docket was administratively closed. Pursuant to an agreement by the parties, an amended complaint was filed in a separate docket 15-CV-00012 on February 13, 2015 pursuing claims against the individual defendants.
On May 4, 2016, the Court granted the Motion to Dismiss this action against certain individual Defendants. This Order was appealed by the Plaintiffs on October 7. The Court of Appeals dismissed this appeal.
On February 14, 2017, the parties entered into a Settlement agreement. The Settlement was preliminarily approved on February 16. Final approval of the Settlement was granted on June 7.