LOS ANGELES, Dec. 1, 2006 (PRIME NEWSWIRE) -- Glancy Binkow & Goldberg LLP -- representing shareholders of Xethanol Corporation -- announces 25 days remaining to move to be a lead plaintiff in the shareholder lawsuit. All persons and institutions who purchased securities of Xethanol Corporation ("Xethanol" or the "Company")(Nasdaq:XNL) between January 31, 2006 and August 8, 2006, inclusive (the "Class Period"), may move the Court not later than December 26, 2006; to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to receive a copy of the Complaint, or have any questions concerning your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150, Toll Free at (888) 773-9224, or e-mail to info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Xethanol and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning Xethanol's operations and financial performance caused the Company's stock price to become artificially inflated, inflicting damages on investors. Xethanol engages in the production and marketing of ethanol and its co products in the United States. The Complaint alleges that during the Class Period defendants made material misrepresentations to the investing public, including, among other things: (i) defendants had misrepresented that the Company's Hopkinton, Iowa plant was being refurbished; (ii) defendants failed to disclose a host of related-party transactions, as well as associations with several early stage investors who had records of stock fraud and market manipulation, among other things; (iii) defendants had materially overstated the Company's profitability by underreporting Xethanol's true cost of completing a biomass-to-ethanol production facility; (iv) throughout the Class Period the Company's internal controls were inadequate, such that Xethanol's operational and financial reports were unreliable; and (v) the Company's financial statements and reports were not prepared in accordance with Generally Accepted Accounting Principles and SEC rules.
As a result of the aforementioned adverse conditions which defendants failed to disclose, defendants lacked any reasonable basis to claim that the Company was operating according to plan, or that Xethanol could achieve the near term commercialization of biomass ethanol production, or achieve the guidance sponsored and/or endorsed by defendants.
It was only at the end of the Class Period that investors ultimately learned the Company's true condition, when shares of Xethanol declined precipitously after investors were shocked by the publication of a highly critical report about Xethanol published by ShareSleuth.com, a forensic securities investigations website. As a direct result of the publication of the ShareSleuth.com report on August 8, 2006, Xethanol's stock price collapsed -- falling almost 50% within the three trading days following the report's publication.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting shareholder lawsuits, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than December 26, 2006, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca