Cohen Milstein Sellers & Toll PLLC Announces Update for Class Action Suit Against HQ Sustainable Maritime Industries, Inc.
October 20 2011 - 12:03PM
Business Wire
Judge Robert S. Lasnik has appointed Cohen Milstein Sellers
& Toll PLLC as Lead Counsel on behalf of all purchasers of the
common stock of HQ Sustainable Maritime Industries, Inc. (AMEX:HQS)
between May 11, 2009 and April 1, 2011, inclusive (the “Class
Period”). The lawsuit is pending in the U.S. District Court for the
Western District of Washington and alleges that HQ Sustainable
Maritime Industries, Inc. (“HQS” or the “Company”) and certain of
its officers and directors made false or misleading statements
and/or omissions in violation of Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934. Cohen Milstein is investigating
whether the Company and certain of its officers and directors also
violated the Securities Act of 1933 in connection with Secondary
Offerings that were issued on or about June 11, 2009 and/or August
10, 2010. Cohen Milstein encourages any purchaser of HQS stock in
connection with the Company’s secondary offerings or former
employees with information concerning those offerings to contact
the firm.
HQS produces and processes aquatic products and is headquartered
in Seattle, Washington with operations in China. The complaint
alleges that Defendants misrepresented and/or failed to disclose
that: (1) a substantial portion of the Company’s revenues were
overstated; (2) HQS’ financial statements were materially false or
misleading and not prepared in accordance with GAAP; (3) HQS had
material deficiencies in its system of internal control over its
financial reporting; and (4) in light of the foregoing, Defendants
lacked a reasonable basis for their positive statements about the
Company, its prospects and growth.
On March 16, 2011, HQS announced that it would be unable to
timely file its 2010 Form 10-K, citing “delays in compiling
information for the preparation of the financial statements.” The
Company assured investors that it expected to file its annual
report by April 1. Despite that assurance, on April 1 HQS announced
that it would not be able to file its 2010 Form 10-K “because the
audit of the Company’s financial statements has not been completed
due to difficulties and delays in obtaining and verifying certain
information.” Trading in HQS shares was suspended on April 1 and
the shares last traded at $2.78.
On April 6, Andrew Intrater, the Chairman of HQS’ Audit
Committee, abruptly resigned, explaining in a letter to defendant
Norbert Sporns, Chief Executive Officer and President of HQS, that
Intrater was “compelled by conscience” to do so because of the
“delay and resistance” the Audit Committee encountered from Sporns
and other members of management in its efforts to verify
“information relating to the company’s accounts and customer
positions.” The following day, HQS reported that it had been
notified by NYSE Amex that, as a result of Intrater’s resignation,
HQS was no longer in compliance with listing standards which
required the Company to have a majority of independent directors
and at least three independent directors on its Audit
Committee.
If you are a HQS shareholder and would like to discuss your
right to recover for your economic loss, you may, without any cost
or obligation, call Cohen Milstein’s Managing Partner, Steven J.
Toll at (888) 240-0775 or (202) 408-4600, or email him at
stoll@cohenmilstein.com.
Cohen Milstein Sellers & Toll PLLC has significant
experience in prosecuting investor class actions and actions
involving securities fraud. The firm has offices in Washington,
D.C., New York, Philadelphia, and Chicago, and is active in major
litigation pending in federal and state courts throughout the
nation.
The firm’s reputation for excellence has repeatedly been
recognized by courts which have appointed the firm to lead
positions in complex multi-district or consolidated litigation.
Cohen Milstein Sellers & Toll PLLC has taken a lead role in
numerous important cases on behalf of defrauded investors, and has
been responsible for a number of outstanding recoveries which, in
the aggregate, total over a billion dollars. Prior results do not
guarantee a similar outcome. For more information visit
www.cohenmilstein.com.
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