22nd Century Group, Inc.
- Company Name
- 22nd Century Group, Inc.
- Stock Symbol
- Class Period
- February 18, 2016 to October 25, 2018
- Motion Deadline
- March 22, 2019
- Eastern District of New York
The complaint charges 22nd Century and certain of its officers with violations of the Securities Exchange Act of 1934. 22nd Century provides technology that increases or decreases nicotine levels and other nicotinic alkaloids in tobacco plants and cannabinoids in hemp/cannabis plants through genetic engineering and plant breeding.
The complaint alleges that, during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and operations. Specifically, defendants failed to disclose that 22nd Century’s stock was prone to manipulation through paid stock promotions and that such conduct would subject 22nd Century to heightened regulatory scrutiny by the SEC. As a result of this information being withheld from investors, 22nd Century securities traded at artificially inflated prices during the Class Period, with its stock reaching a high of more than $4 per share.
On February 2, 2018, Seeking Alpha reported that 22nd Century had utilized a years’ long scheme of “[r]ampant paid stock promotion” to inflate its stock price. On this news, the price of 22nd Century shares fell 115. Then on October 25, 2018, Seeking Alpha issued another report on 22nd Century stating that the SEC was actively investigating the Company for its involvement in a potential pump and dump scheme. On this news, the price of 22nd Century shares fell another 4% to close at $2.45 per share on October 25, 2018.