Lots of sweet lawsuits piling on. UEC shouldn't have deceived investors like that!
NEW YORK, July 02, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Texas on behalf of all persons or entities who purchased Uranium Energy Corp. (“Uranium Energy” or the “Company”) (UEC) securities between October 14, 2014 and June 17, 2015, inclusive (“Class Period”), alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
The Complaint alleges that Defendants made false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, the Complaint alleges that defendants made false and/or misleading statements and/or failed to disclose that: (1) Uranium Energy stock achieved an unsustainable valuation by using paid stock promoters, yet failed to reveal the use of such promoters in its regulatory filings pursuant to Section 17(b) of the Securities Act of 1933; and (2) as a result of the foregoing, Uranium Energy’s public statements were materially false and misleading at all relevant times.
On June 18, 2015, an article published by www.TheStreetSweeper.org reported that Uranium Energy was using undisclosed paid stock promoters to increase the price of Uranium Energy shares. According to a report by www.hotstocked.com, quoted in the article above, Uranium Energy was responsible for the publication of at least eight separate stock promotions, for which the Company, or third parties controlled by the Company, paid over $200,000. Some of the stock promotion campaigns were from promoters named “LightningStockPicks,” “Micro Stock Profit,” “InvestorSoup.com,” “The Penny Stocks Finder,” “Stock Preacher,” and “Future Money Trends” and included headlines such as “Chart Is Glowing Green! (UEC) #1 NYSE Play Today,” “UEC Just Hit Critical Mass,” and “(UEC) #1 NYSE Play Today.”
The next day, the Company issued a press release denying the allegations and stating that the article published by www.TheStreetSweeper.org had no merit. However, the Company’s press release article did not address the allegations related to the undisclosed paid stock promotions and the market was apparently unconvinced.
