PHILADELPHIA, May 30, 2014 /PRNewswire-USNewswire/ -- The law
firm of Berger & Montague, P.C. has filed a class action in the
U.S. District Court for the Central District of California on behalf of all purchasers of
GrowLife, Inc. ("GrowLife") (OTCBB: PHOT) common stock between
November 14, 2013 and April 9, 2014, inclusive (the "Class
Period").
Investors who purchased GrowLife common stock during the Class
Period may move the Court to appoint them as lead plaintiff, no
later than June 17, 2014. A
lead plaintiff is a representative party acting on behalf of other
class members in directing the litigation. Investors in GrowLife
who wish to discuss this action or the lead plaintiff selection
process may contact Berger & Montague, P.C., toll free at
1-888-891-2289, or by e-mail at elechtzin@bm.net. A copy of the
class action complaint can be viewed on Berger & Montague,
P.C.'s website at www.bergermontague.com or may be requested from
the Court. The case is Wolf v. GrowLife, Inc., No.
2:14-cv-04112.
Background on the GrowLife Securities Class Action
GrowLife develops, markets and deploys products and services
addressing the needs of legal cannabis growing and retail
operations, including hydroponic growing equipment and retail
support software.
The Complaint alleges that, throughout the Class Period,
defendants made false and misleading statements and/or failed to
disclose that: (1) defendants had valued GrowLife shares issued to
company insiders at far below then-current market prices, and
concealed and underreported the actual value of such payments; (2)
defendants had provided inaccurate and/or inadequate information in
GrowLife's filings with the U.S. Securities and Exchange Commission
(the "SEC") about the stock-based compensation it paid to its
current and former officers and directors; (3) defendants' improper
valuations of stock-based compensation to insiders caused
GrowLife's publicly reported financials to be materially misstated
and in violation of Generally Accepted Accounting Principles; (4)
defendants had engaged in manipulative transactions involving
GrowLife common stock, including substantial insider stock sales
immediately before the SEC suspending trading in the company's
securities.
On April 10, 2014, the SEC
temporarily halted trading of GrowLife securities, stating that
"[t]he Commission temporarily suspended trading in the securities
of PHOT because of questions that have been raised about the
accuracy and adequacy of information in the marketplace and
potentially manipulative transactions in PHOT's common stock."
When trading of the Company's stock resumed on April 25, 2014, the price of GrowLife shares
dropped $0.29 per share, or 58% from
a previous closing price of $0.50 on
April 9, 2014, to close at
$0.21 per share on April 25, 2014, on extremely high trading
volume.
About Berger & Montague, P.C.
Berger & Montague, P.C., with over 50 attorneys, represents
plaintiffs in complex and class action litigation. The firm has
played lead roles in major cases for over 40 years, resulting in
recoveries of billions of dollars for its clients and the classes
they represent.
For more information, please contact:
Sherrie R. Savett, Esq.
Eric Lechtzin, Esq.
BERGER & MONTAGUE, P.C.
1622 Locust Street
Philadelphia, PA 19103
Telephone: 1-888-891-2289 or 215-875-3038
Email: elechtzin@bm.net
SOURCE Berger & Montague, P.C.