Cemtrex Inc (NASDAQ:CETX) Investor Securities Class Action Lawsuit 02/24/2017

You must submit the settlement "Proof" form attached below, in order to participate in this settlement. There is a strict deadline of April 15, 2019, by which all claims must be submitted. The instructions for submitting are included in the "Proof" and the "Notice" files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, FOLLOW THE DIRECTIONS IN THE "PROOF".

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Company Name(s): 
Cemtrex
Case Name: 
Cemtrex Shareholder Class Action Lawsuit 02/24/2017
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: CETX
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
05/07/2018
Class Period Begin: 
12/26/2012
Class Period End: 
03/06/2017
Court of Filing: 
U.S. District Court for the Eastern District of New York
Deadline To File for Lead: 
04/25/2017
Date Settled: 
01/31/2019
Settlement Amount: 
$625,000
Deadline to Participate in Settlement: 
04/15/2019
Settlement Notice: 
Settlement Proof: 
Summary: 

January 31, 2019 - The court preliminarily approved the settlement.

December 21, 2018 - Parties filed a stipulation of settlement.

February 24, 2017 (Shareholders Foundation) - An investor in shares of Cemtrex Inc (NASDAQ:CETX) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Cemtrex Inc in connection with certain allegedly false and misleading statements made between February 11, 2016 and February 22, 2017.

According to the complaint the plaintiff alleges on behalf of purchasers of Cemtrex Inc (NASDAQ:CETX) common shares between February 11, 2016 and February 22, 2017, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 11, 2016 and February 22, 2017, the Defendants failed to disclose that Cemtrex’s banker Source Capital was at risk of having its registrations terminated for wrongdoing, that Cemtrex Inc was utilizing paid stock promoters to artificially inflate the price of the Company’s stock, that Aron Govil, a member of the Company’s Board of Directors, was secretly paying stock promoters via an undisclosed entity, that Company insiders were selling their stock during the paid promotion, taking advantage of the artificially inflated stock price, that the Company’s purported audit firm claimed to operate at a location that was actually vacant, that the controlling partner behind the Company’s auditor was banned by the SEC and PCAOB for conducting fraudulent audits or reviews of public companies while performing little or no work and without being licensed, that the Company’s auditor was signing off on the Company’s financial disclosures without conducting a proper review, and that, as a result of the foregoing, Defendants’ statements about Cemtrex’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

Farmingdale, NY based Cemtrex, Inc. is a diversified technology company, which provides solutions to industrial and manufacturing needs. Cemtrex Inc reported that its Total Revenue rose from $56.89 million for the 12 months period that ended on September 30, 2015 to $93.70 million for the 12 months period that ended on September 30, 2016 and that its Net Income for those respective time periods increased from $2.84 million to $4.99 million.

Shares of Cemtrex Inc (NASDAQ:CETX) grew from $1.65 per share in February 2016 to as high as $8.41 per share in January 2017.

On February 22, 2017, an article was published on Cemtrex Inc revealing that over $1 million has been paid to stock promoters to promote Cemtrex Inc. The report alleged that Cemtrex’s founder Aron Govil was secretly paying promoters behind imploded frauds like Forcefield Energy and Code Rebel via an undisclosed entity and that insiders of Cemtrex Inc have been heavily selling shares during the paid promotion without disclosing them.

Shares of Cemtrex Inc (NASDAQ:CETX0 declined to as low as $2.76 per share on February 22, 2017.

On February 24, 2017, NASDAQ:CETX shares closed at $4.01 per share.