If you have purchased shares of KiOR Inc (NASDAQ:KIOR) between August 14, 2012 and August 7, 2013, call 1-800-934-2921 right now to protect your rights.
Filing deadline: 10/21/2013
Investors filed a lawsuit in the United States District Court, Southern District of Texas after production was found to be a quarter of what was projected by company directors. The plaintiffs are suing on behalf of all investors in KiOR securities, making it a class action lawsuit. KiOR shares lost half their value in a two week period after the alleged fraud was reported.
The biofuels plant specified in the lawsuit is located in Columbus, Ohio. The plaintiffs contend that company officers reported 2013 anticipated second quarterly production of 300,000 gallons of fuel. Actual production was 75,000 gallons of fuel. Actual earnings were 12 percent of estimates. The plaintiffs accuse the company directors of failing to manage production, then falsifying information in communications with investors from 2012 through August 2013.
Specifically, the lawsuit charges that the defendant failed to disclose material information about the miscalculation and production forecast to investors. Failure to disclose material information is a violation of the Federal Securities Act (1934). Providing misleading information is also a Federal Securities Act violation. KiOR stock lost 44 percent of its value from August 6 through August 19, 2012 after second quarter earnings were reported.
KiOR stock traded at a high of $20.74 in 2011 after the company filed for a patent but fell to $4.92 in early 2012 before the lawsuit was filed. The company began producing biofuels in 2012 and fell drastically short of its projections for that year, and this year. Nonetheless, KiOR executives believe the technology the company has developed is viable and that production will continue to grow. The company plans to produce more than 13 million gallons a year when it reaches full production.
Own shares of KiOR Inc (NASDAQ:KIOR)? Contact us to protect your rights.
If you have purchased shares of KiOR Inc (NASDAQ:KIOR) between August 14, 2012 and August 7, 2013, call 1-800-934-2921 right now to protect your rights. Complete the form on this page or call attorney Bill Kyros at 1-800-934-2921 right now to protect your rights.