Industrial Enterprises of America Inc. Case 11/16/2007

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Company Name(s): 
Industrial Enterprises of America
Case Name: 
Industrial Enterprises of America Inc. Case 11/16/2007
Case Status: 
Lawsuit Filed
Case Status: 
Judgment Issued
Case Status: 
Settlement Proposed
Case Status: 
Settlement Approved
Affected Securities
OTC: IEAM
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
11/16/2007
Class Period Begin: 
12/04/2006
Class Period End: 
11/07/2007
Court of Filing: 
U.S. District Court for the Southern District of New York
Settlement Amount: 
$3,800,000
Deadline to Participate in Settlement: 
07/08/2009
Summary: 

The complaint charges that IEAM and certain of its present and former officers, directors, and control persons violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing materially false and misleading statements pertaining to IEAM’s business prospects and condition, and filing financial statements with the SEC materially false financial statements.
 
On November 7, 2007 the Company announced that investors could no longer rely on its historical financial statements and that the Company had not properly followed generally accepted accounting principles, necessitating a revision of reported revenue, among other things. The Company also announced that it had suspended its CFO pending a review. As a result of these events, the Complaint asserts that the price of IEAM stock dropped, damaging investors.