Lawsuits Settled - From CEO - Read more below (link)
Settled Lawsuits
On August 17, 2015 the U.S. District Court formally dismissed the last pending lawsuit against GrowLife. This means that all three of the Class Action, Derivative and AmTrust insurance company lawsuit settlements have been approved. The resolution of this litigation is a major boost to restoring the normal operations of GrowLife and returning our focus to shareholder value.
Four outsiders accused of manipulating GrowLife’s stock, see pages 17–20 for specific actions in SEC Complaint, led to “116. On April 10, 2014, the Commission suspended trading in PHOT securities.” Throughout this process, the SEC has never informed GrowLife it was under formal investigation and we have not received information to indicate that any of the trading manipulation of GrowLife stock involved company management or insiders.
To protect shareholders, regulatory agencies will typically halt company trading quickly if they suspect that the stock has been manipulated. Unfortunately, they do not always approve the return of its trading status quickly. We hope that the filing of the S-1 registration statement is another way for GrowLife to show the SEC directly that the company is ready to be trading again.
On the company’s side, precious time and funds were spent that could have helped build the company. Likewise, many of our over 17,000 shareholders participated in the lawsuit, but not many may feel rewarded. The US District Court approved the class action settlement on August 3rd and approved the derivative settlement on August 17th. The lesson learned here is that you have to pick your battles. Even if you believe they have no merit, it is better to get past them and get back to business.
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