SAN FRANCISCO, Nov. 17, 2014 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, reminds investors that a class action lawsuit has been filed against CBD Energy Limited (Nasdaq:CBDE) ("CBDE" or "the Company)—an Australian small cap company with principal offices in London and New York. The suit is pending in the U.S. District Court for the Eastern District of Texas and investors have until December 26, 2014 to move for lead plaintiff.
The complaint covers those investors who purchased shares of CBDE on the NASDAQ Capital Markets exchange pursuant to the June 13, 2014 stock offering. If your purchases fall between June 12, 2014 and October 24, 2014, you are encouraged to contact Hagens Berman Partner Reed Kathrein, who is leading the firm's investigation, by calling (510) 725-3000, emailing CBDE@hbsslaw.com or visiting http://hb-securities.com/investigations/CBDE.
According to the complaint, CBDE, its officers and directors, and its underwriters—National Securities Corporation (a wholly owned subsidiary of National Holdings, Inc. (OTCBB:NHLD) and Northland Securities, Inc.—violated the securities laws by issuing 1,810,000 ordinary shares, at an offering price of $4.00 per share, without disclosing material facts in its Registration statement. On October 24, 2014 CBDE announced that its previously issued audited financial statements for the fiscal years 2012 and 2013 and interim financial statements for the six months ended December 31, 2013 cannot be relied upon by investors. On this news, the value of CBDE shares declined significantly from $1.92 per share to a low of $1.25 per share.
The Company has also admitted that CBDE has questions about the full value of a deposit of approximately $680,000. Additionally, CBDE now questions the adequacy of disclosures regarding goodwill; the possibility of recognizing an impairment, the capitalization of certain payments related to the costs of issuing retail bonds in the United Kingdom; the classification of certain expenses; and the true nature of certain related-party transactions involving its Executive Chairman and Managing Director, Gerard McGowan. The Audit Committee is now conducting a review.
"CBDE and National Holdings appear to have skirted disclosure requirements in order to scam small investors as has been frequent as of late with domestic offerings of stock by foreign companies," said Mr. Kathrein. "With most of their assets overseas, and hard to reach, they probably believed their offering was easy money."
If you suffered a loss from your investment in CBDE securities purchased on or during the period June 12, 2014 and October 24, 2014, and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, please contact us for your no-cost evaluation. No class has yet been certified in the above action.
Whistleblowers: Persons with non-public information regarding CBDE should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. For more information, call Reed Kathrein at (510) 725-3000 or email CBDE@hbsslaw.com.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in nine cities. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes can be found at www.hbsslaw.com. Read the firm's Securities Newsletter at http://www.hb-securities.com/newsletter. The firm's blog is located at www.meaningfuldisclosure.com.
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