NEW YORK (Legal Newsline) – A class action lawsuit seeks damages from a company that allegedly used underhanded tactics to inflate its worth.
Dean Rosales and Nirav Shah filed a class action complaint against Forcefield Energy Inc., David Natan, Jason Williams and Richard St. Julien on April 27 in U.S. District Court for the Southern District of New York.
Daniel Patrick Moynihan U.S. Courthouse
The defendants are in the alternative energy industry, bringing market products such as light emitting diode commercial lights and fixtures.
They also utilize “waste heat,” which involves making clean electricity from manufacturing sources, the lawsuit states.
But the lawsuit stems from Forcefield allegedly making false or misleading statements about the company and even, according to court documents, enlisted paid promoters to inflate stock and hid some of its employees’ history with “fraudulent companies.”
Once the media caught wind, the companies shares fell 21 percent in one day, April 15, the lawsuit claims.
Then, five days later, the company’s former chairman, St. Julien, resigned his position, was arrested and was charged with “scheming to boost the company’s share price in part by making secret payments to conspirators through a firm based in Belize.”
All the plaintiffs, citing significant losses and damages, seek the court to validate their action and award compensatory damages, costs and expenses.
The plaintiff is represented by Joseph E. Guglielmo, Thomas L. Laughlin and Joseph V. Halloran at Scott and Scott LLP in New York.
U.S. District Court for the Southern District of New York case no. 1:15-cv-03279
