BlueNRGY Group Limited (Nasdaq: CBDE)
A class action has been commenced in the Southern District of Texas on behalf of purchasers of BlueNRGY Group Limited (Nasdaq: CBDE) common stock during the period between June 13, 2014 and October 24, 2014 (the “Class Period”).
The complaint charges BlueNRGY and certain of its officers with violations of the Securities Exchange Act of 1934. BlueNRGY, an Australian company, and its subsidiaries operate in the global renewal energy and energy-efficiency sectors, providing various renewal energy services and technologies, including clean, renewable and cost-effective sources of electricity for consumers on three continents.
On June 13, 2014, BlueNRGY conducted a secondary offering of 1.81 million shares of its common stock at $4 per share for proceeds of $7.24 million (the “Offering”). The complaint alleges the documents issued in connection with the Offering, which contained the Company’s financial results back to 2012, failed to disclose numerous material related-party transactions involving the Company’s Managing Director and Chairman, Gerard McGowan (“McGowan”). As a result of the omissions, the offering documents were false and misleading, overstating equity and total assets as of June 30, 2012 and 2013, overstating revenue for the years ending June 30, 2012 and 2013, and understating the net loss for the year ending June 30, 2012.
On October 24, 2014 BlueNRGY announced that its previously issued audited financial statements for the fiscal years 2012 and 2013 and the interim financial statements for the six months ended December 31, 2013 could no longer be relied upon. According to the Company, certain related-party transactions involving McGowan were not accurately disclosed in its financial statements. The failure to disclose and properly account for McGowan’s related-party transactions rendered BlueNRGY’s financial statements for fiscal years 2012 and 2013 false and misleading. On this news, the price of BlueNRGY stock declined sharply, falling as low as $0.84 per share before closing at $1.25 per share on October 24, 2014.
If you are a current shareholder and/or purchased stock between June 13, 2014 and October 24, 2014, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
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