The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Cemtrex, Inc. (NASDAQ: CETX) who purchased shares between December 7, 2016 and February 21, 2017. The action, which was filed in the United States District Court for the Eastern District of New York, alleges that the Company violated federal securities laws.
In particular, the complaint alleges that (1) over $1 million has been paid to stock promoters since late 2015; (2) the entity paying for the stock promotion was owned by Defendant Aron Govil and based out of Cemtrex's corporate headquarters; (3) senior executives engaged in undisclosed insider selling; (4) the Company retained a foreign accounting firm with a history of fraudulent endeavors to conduct its financial audits; and (5) 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.
Shareholders have until April 25, 2017 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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