Posted On: 07/01/2014 9:40:37 PM
Post# of 768
Re: TruthBeTold #204
Selection of lead plaintiff hasn't been announced yet by the Court in re PHOT. Many of these suits are settled out of court.
One of the law firms summarized the complaint as follows:
The Complaint alleges that, throughout the Class Period, defendants made false and misleading statements and/or failed to disclose that:
(1) defendants had valued GrowLife shares issued to company insiders at far below then-current market prices, and concealed and underreported the actual value of such payments;
(2) defendants had provided inaccurate and/or inadequate information in GrowLife's filings with the U.S. Securities and Exchange Commission (the 'SEC') about the stock-based compensation it paid to its current and former officers and directors;
(3) defendants' improper valuations of stock-based compensation to insiders caused GrowLife's publicly reported financials to be materially misstated and in violation of Generally Accepted Accounting Principles;
(4) defendants had engaged in manipulative transactions involving GrowLife common stock, including substantial insider stock sales immediately before the SEC suspending trading in the company's securities.
On April 10, 2014, the SEC temporarily halted trading of GrowLife securities, stating that "the Commission temporarily suspended trading in the securities of PHOT because of questions that have been raised about the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in PHOT's common stock."
One of the law firms summarized the complaint as follows:
The Complaint alleges that, throughout the Class Period, defendants made false and misleading statements and/or failed to disclose that:
(1) defendants had valued GrowLife shares issued to company insiders at far below then-current market prices, and concealed and underreported the actual value of such payments;
(2) defendants had provided inaccurate and/or inadequate information in GrowLife's filings with the U.S. Securities and Exchange Commission (the 'SEC') about the stock-based compensation it paid to its current and former officers and directors;
(3) defendants' improper valuations of stock-based compensation to insiders caused GrowLife's publicly reported financials to be materially misstated and in violation of Generally Accepted Accounting Principles;
(4) defendants had engaged in manipulative transactions involving GrowLife common stock, including substantial insider stock sales immediately before the SEC suspending trading in the company's securities.
On April 10, 2014, the SEC temporarily halted trading of GrowLife securities, stating that "the Commission temporarily suspended trading in the securities of PHOT because of questions that have been raised about the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in PHOT's common stock."
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