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COUGHLIN STOIA GELLER RUDMAN & ROBBINS LLP FILES CLASS
ACTION SUIT AGAINST RENTECH, INC.
January 6, 2010 – Coughlin Stoia Geller Rudman & Robbins LLP (“Coughlin Stoia”) (http://www.csgrr.com/cases/rentech/) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of Rentech, Inc. (“Rentech”) (AMEX:RTK) securities during the period between February 8, 2008 and December 15, 2009 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from December 30, 2009. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.csgrr.com/cases/rentech/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Rentech and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Rentech provides clean energy solutions to produce ultra-clean synthetic fuels and chemicals.
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company made unsubstantiated accounting entries during the Class Period; (2) that, as a result, the Company’s financial results were overstated during the Class Period; (3) that the Company’s financial results were not prepared in accordance with Generally Accepted Accounting Principles; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the above, the Company’s financial statements were materially false and misleading at all relevant times.
On December 14, 2009, Rentech announced that it would restate its previously reported annual and quarterly results for fiscal year 2008 and for the first three quarters of fiscal year 2009, to correct “a prior incorrect classification of cash deposits required by forward gas purchase contracts as inventory, and reclassifies them as deposits on gas purchase contracts within current assets on the balance sheet.” As a result of this news, Rentech stock fell approximately 11% on unusually heavy trading volume from its December 14, 2009, closing price of $1.64 per share, to close on December 16, 2009, at $1.47 per share. The price of Rentech stock has declined more than 22% since the disclosure of the Company’s improper accounting practices.
Plaintiff seeks to recover damages on behalf of all purchasers of Rentech securities during the Class Period (the “Class”). The plaintiff is represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Coughlin Stoia Web site (http://www.csgrr.com) has more information about the firm.
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