Root9b Technologies Inc (OTCMKTS:RTNB), a leading name in the American technology space, faces a class action lawsuit. As per the reports, the information was made public by Gainey McKenna & Egleston stating that a lawsuit had been filed against Root9b on behalf of all the people suffered in the past.
Insights On The Matter:
A lot of people and entities had bought Root9b shares between December 1, 2014, and June 15, 2015. However, it was revealed later that they were misled by the company and a few of its officers. Certain allegations of violating Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 were filed against the company and its management team.
What’s The Issue:
The lawsuit alleges that defendants made misleading statements and false promises to all those who subscribed company’s shares. They also failed to disclose two important facts to all the shareholders-
- Root9b doesn’t have any advanced cyber security product to offer,
- A significant portion of cyber security business of Root9b comprises of a one-time hardware installation.
When these two details were made available in the market, all those people and entities that had bought company’s shares, had to face loss. The current lawsuit seeks to provide justice to all of them who bought its securities and suffered a huge loss in the market.
Gainey McKenna & Egleston have asked all those who have gone through a harsh experience to register their appeal in the Court no later than August 24, 2015. The lawsuit has been filed in United States District Court for California, so people can contact concerned authorities in this court. In case of any hassle, people can get in touch with Thomas J. McKenna and/or Gregory M. Egleston of Gainey McKenna & Egleston.
The management of Root9b Technologies Inc (OTCMKTS:RTNB) hasn’t come forward with any public announcement concerning this matter.