San Diego, CA -- (SBWIRE) -- 06/17/2014 -- An investor, who purchased shares of Biozoom Inc, previously known as Entertainment Art, Inc, OTCMKTS:BIZM), filed a lawsuit in the U.S. District Court for the Northern District of Ohio over alleged violations of Federal Securities Laws by market maker KCG Americas LLC in connection with certain allegedly false and misleading statements made between May 16, 2013 and June 25, 2013.
If you purchased a significant amount of shares of Biozoom Inc (OTCMKTS:BIZM) between May 16, 2013 and June 25, 2013 from market maker KCG Americas LLC, you have certain options and for certain investors are short and strict deadlines running. Deadline: July 21, 2014. Biozoom Inc (OTCMKTS:BIZM investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Biozoom Inc (OTCMKTS:BIZM) common shares between May 16, 2013 and June 25, 2013 from market maker KCG Americas LLC, that the defendants violated the Securities Exchange Act of 1934.
The plaintiff alleges that, according to an ongoing action by the Securities and Exchange Commission (“SEC”), between January 2013 and June 2013, certain Argentinean nationals opened U.S. brokerage accounts and deposited millions of shares of unregistered Entertainment Art stock into those accounts.
On March 12, 2013, Entertainment Art announced a substantial change in business operations from the development of fashionable leather bags to involvement in the biomedical industry. On April 1, 2013, Entertainment Art changed its name to Biozoom Inc and listed itself on the OTCBB.
The plaintiff claims that beginning on May 23, 2013, Biozoom Inc began issuing a series of press releases claiming it had created the world’s first portable, handheld consumer device to instantly measure certain “biomarkers,” including anti-oxidant levels, vitamin absorption, and stress levels and that after these press releases and certain stock promoters’ reiteration of their claims, Biozoom Inc’s stock price and trading volume increased significantly.
The plaintiff says that between May 16, 2013 and June 19, 2013, certain Argentinean nationals sold millions of unregistered shares of Biozoom Inc for large profits, however, no registration statement was filed with the SEC in connection with the sales and the sales did not qualify for any exception from registration.
Biozoom Inc reported that its Net Loss increased to $0.14 million for the 12 months period that ended on March 31, 2013. Shares of Biozoom Inc (OTCMKTS:BIZM) dropped from $4.27 per share on June 18, 2013, to $0.16 per share on July 12, 2013.
On June 13, 2014, OTCMKTS:BIZM shares closed at $0.01 per share.
Those who purchased shares of Biozoom Inc (OTCMKTS:BIZM) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego