HARTFORD, Conn., Oct. 30, 2006 (PRIMEZONE) -- The law firm of Schatz Nobel Izard, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased or otherwise acquired the common stock of Xethanol Corp. ("Xethanol" or the "Company") (AMEX:XNL) (formerly, OTC:XTHN) between January 31, 2006 and August 8, 2006, inclusive, (the "Class Period").
The Complaint alleges that Xethanol and certain of its officers and directors violated federal securities laws by issuing a series of materially false statements. Specifically, it is alleged that Xethanol repeatedly assured investors that it could sustain itself on revenue from corn ethanol production. However, throughout the Class Period, Xethanol failed to disclose the following adverse facts: (i) Xethanol had misrepresented management's experience and standard of ethics; (ii) Xethanol had omitted disclosing a series of related party transactions and association with investors who had alarming records of stock fraud and related shareholder abuses; (iii) Xethanol had materially overstated the Company's profitability by under-reporting the true costs associated with completing a biomass to ethanol production facility, and by failing to make proper adjustments to the Company's financial reports; and (iv) Xethanol lacked any reasonable basis to assert that it was operating according to plan or could achieve the near-term commercialization of biomass ethanol production, or achieve the guidance sponsored and/or endorsed by the Company.
If you are a member of the class, you may, no later than December 26, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.