A lawsuit was filed on behalf of investors in Cemtrex Inc (NASDAQ:CETX) shares over alleged securities laws violations and NASDAQ:CETX investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 02/27/2017 -- An investor, who purchased shares of Cemtrex Inc (NASDAQ:CETX), filed a lawsuit in New York against Cemtrex, Inc over alleged violations of Federal Securities Laws.
Investors who purchased shares of Cemtrex Inc (NASDAQ:CETX) have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff claims that between February 11, 2016 and February 22, 2017, the Defendants failed to disclose that Cemtrex's banker Source Capital was at risk of having its registrations terminated for wrongdoing, that Cemtrex Inc was utilizing paid stock promoters to artificially inflate the price of the Company's stock, that Aron Govil, a member of the Company's Board of Directors, was secretly paying stock promoters via an undisclosed entity, that Company insiders were selling their stock during the paid promotion, taking advantage of the artificially inflated stock price, that the Company's purported audit firm claimed to operate at a location that was actually vacant, that the controlling partner behind the Company's auditor was banned by the SEC and PCAOB for conducting fraudulent audits or reviews of public companies while performing little or no work and without being licensed, that the Company's auditor was signing off on the Company's financial disclosures without conducting a proper review, and that, as a result of the foregoing, Defendants' statements about Cemtrex's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On February 22, 2017, an article was published on Cemtrex Inc revealing that over $1 million has been paid to stock promoters to promote Cemtrex Inc. The report alleged that Cemtrex's founder Aron Govil was secretly paying promoters behind imploded frauds like Forcefield Energy and Code Rebel via an undisclosed entity and that insiders of Cemtrex Inc have been heavily selling shares during the paid promotion without disclosing them. Shares of Cemtrex Inc (NASDAQ:CETX) declined to as low as $2.76 per share on February 22, 2017.
On February 24, 2017, NASDAQ:CETX shares closed at $4.01 per share.
Those who purchased shares of Cemtrex Inc have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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