VeraSun Energy Corp. investor sues former executives
November 11, 2009
Press release posted Nov. 18, 2009, at 11:49 a.m. CST
An investor in VeraSun Energy Corp. filed a lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of VeraSun between March 12, 2008, and Sept. 16, 2008, over alleged securities laws violations by certain former VeraSun Energy executives.
According to the complaint, the plaintiff alleges that certain VeraSun former executives violated the Exchange Act by failing to disclose between March 12, 2008, and Sept. 16, 2008 material adverse facts about VeraSun's true financial condition, business and prospects. Then, on Sept. 16, 2008, VeraSun announced that it commenced a public offering of 20 million shares of its common stock to raise money for "general corporate purposes." The true purpose of this public offering was to raise capital in an effort to prevent a disastrous impact from the huge losses experienced by VeraSun as a result of its speculative trading and risky bets on the price of corn, so the lawsuit. In response to VeraSun's announcement on Sept. 16, 2008, shares of the company's stock fell $3.81 per share, or 70 percet, from a close of $5.22 per share before the announcement, to close at $1.41 per share on Sept. 17, 2008, on extremely heavy trading volume. On Oct. 31, 2008, VeraSun filed for bankruptcy protection.
SOURCE: SHAREHOLDERS FOUNDATION INC.
An investor in VeraSun Energy Corp. filed a lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of VeraSun between March 12, 2008, and Sept. 16, 2008, over alleged securities laws violations by certain former VeraSun Energy executives.
According to the complaint, the plaintiff alleges that certain VeraSun former executives violated the Exchange Act by failing to disclose between March 12, 2008, and Sept. 16, 2008 material adverse facts about VeraSun's true financial condition, business and prospects. Then, on Sept. 16, 2008, VeraSun announced that it commenced a public offering of 20 million shares of its common stock to raise money for "general corporate purposes." The true purpose of this public offering was to raise capital in an effort to prevent a disastrous impact from the huge losses experienced by VeraSun as a result of its speculative trading and risky bets on the price of corn, so the lawsuit. In response to VeraSun's announcement on Sept. 16, 2008, shares of the company's stock fell $3.81 per share, or 70 percet, from a close of $5.22 per share before the announcement, to close at $1.41 per share on Sept. 17, 2008, on extremely heavy trading volume. On Oct. 31, 2008, VeraSun filed for bankruptcy protection.
SOURCE: SHAREHOLDERS FOUNDATION INC.
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