NEW YORK, Apr. 20, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the securities of ForceField Energy Inc. (“ForceField” or the “Company”) (Nasdaq:FNRG) during the period from September 16, 2013 through April 15, 2015 (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
ForceField purports to design, distribute, and license alternative energy products and technologies in China and the United States. ForceField is a distributor of light emitting diode (“LED”) and other lighting products for a number of premier LED lighting manufacturers.
The Complaint alleges that the Company failed to disclose that members of its management team have substantial connections to public companies that have been scrutinized for fraudulent or illegal activity. When this information was revealed on April 15, 2015, the price of the Company’s shares declined by $2.97, to close at $4.74 per share on April 16, 2015. Ultimately, the Company’s stock price fell below $3.15 by April 20, 2015.
According to the Complaint, Defendants falsely stated and/or failed to disclose that: (1) articles issued by independent authors touting the Company were in fact paid promoters hired by the Company; (2) ForceField’s management reviewed these so-called independent articles before publication; and (3) members of ForceField’s management have disturbing histories with fraudulent companies.
On April 20, 2015, a Bloomberg article reported that Richard St-Julien (“St-Julien”), former chairman of ForceField, “was arrested and had resigned as chairman.” St-Julien “was charged with scheming to boost the company’s share price using secret payments” to conspirators through a Belize-based firm. ForceField’s stock was halted on April 20, 2015 and is currently down nearly 60% from its close on April 14, 2015.
If you wish to serve as lead plaintiff, you must move the Court no later than June 16 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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