Cemtrex Files $170 Million Lawsuit against Richard Pearson, Seeking Alpha author, and Others for Trade Libel
March 06 2017 - 3:31PM
Business Wire
Complaint filed in the District Court for the
Eastern District of New York alleging Pearson publicly disseminated
through Seeking Alpha false and libelous statements about Cemtrex
to drive Cemtrex stock price down while taking short position in
Cemtrex stock to gain a financial windfall.
Cemtrex, Inc. (Nasdaq CM:CETX, CETXP, CETXW), a
global diversified industrial and manufacturing company, today
announced that it has filed a federal trade libel and tortious
interference lawsuit against Ricardo Pearson (aka Richard Pearson)
and those others who aided and abetted Pearson’s market
manipulation by shorting the shares of Cemtrex, in the United
States District Court for the Eastern District of New York,
alleging that Mr. Pearson publicly disseminated through the Seeking
Alpha website false and libelous statements about Cemtrex to drive
the Cemtrex stock price down, while at the same time having a short
position in Cemtrex stock to gain a financial windfall. The
lawsuit’s Complaint, which is also being filed with the SEC today
as an exhibit to Cemtrex’s current report on Form 8-K, contains a
point-by-point rebuttal of each and every one of Pearson’s claims.
Cemtrex is seeking total damages of $170 million, including
punitive damages, money damages and interest.
Defendant Ricardo Pearson, who uses the
pseudonym “Richard Pearson,” is a veteran short seller and who has
been allegedly involved in writing negative articles about and
shorting the shares of other companies to manipulate the shares
down to profit from the share price collapse. On February 22, 2017,
he published a malicious and libelous “report” on Cemtrex causing
Cemtrex’s share price to quickly drop in value.
Among the false allegations in Pearson’s
so-called report were the false and salacious allegations regarding
accounting professionals affiliated with Cemtrex. Pearson falsely
claimed that the auditor for Cemtrex’s 2014 and earlier financial
statements was defunct at the time of these reports, which it was
not, and made numerous false statements regarding Cemtrex’s current
auditor, Bharat Parikh Associates, suggesting that the firm was run
by a disbarred accountant. In fact, Cemtrex’s accounting firm is a
PCAOB recognized and compliant auditing firm, in good standing in
all respects.
Cemtrex CEO Saagar Govil commented, “This
lawsuit is critical to defend the interests of all of the company’s
shareholders, recent investors, customers and business partners.”
He added, “We felt this lawsuit was the best course of action to
make sure those looking to profit by trying to frighten our
investors and customers, and by circumventing appropriate and
established channels for raising shareholder concerns, do not use
this avenue to do so again.”
Cemtrex intends to vigorously prosecute this
lawsuit against the meritless claims that have been asserted
against it.
About Cemtrex
Cemtrex, Inc. is a global, diversified
industrial and manufacturing company that provides a wide array of
solutions to meet today’s technology challenges and is rapidly
growing through acquisitions. Cemtrex provides manufacturing
services of advanced custom engineered electronics, industrial
contracting services, monitoring instruments for industrial
processes and environmental compliance, and equipment for
controlling particulates, hazardous pollutants and Greenhouse gases
used in carbon trading globally. For more information, please visit
www.cemtrex.com.
Cautionary Note Regarding Forward-Looking
Statements
Except for historical information, the matters
set forth herein that are forward-looking statements involve
certain risks and uncertainties that could cause actual results to
differ. Potential risks and uncertainties include, but are not
limited to, Cemtrex's expectations and beliefs regarding the
unpredictability and cost of litigation, changes in the trading
market for our securities, and general economic and market
condition; and the other risk factors set forth from time to time
in our filings with the SEC, including our Annual Report on Form
10-K for the fiscal year ended September 30, 2016, and the
Company's periodic filings with the SEC, copies of which are
available free of charge at the SEC's website at www.sec.gov or upon request from Cemtrex. All
forward-looking statements herein reflect our opinions only as of
the date of this release. These statements are not guarantees of
future performance and actual results could differ materially from
our current expectations. Cemtrex undertakes no obligation, and
expressly disclaims any obligation, to update forward-looking
statements herein in light of new information or future events,
except as required by federal securities laws.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170306006247/en/
Investors:Cemtrex, Inc.Investor
Relations631-756-9116investors@cemtrex.comorIRTH
CommunicationsAndrew Haag, 866-976-4784Managing
PartnerCETX@irthcommunications.com
Cemtrex (NASDAQ:CETX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cemtrex (NASDAQ:CETX)
Historical Stock Chart
From Apr 2023 to Apr 2024