Spongetech Delivery Systems, Inc. (fka SPNGQ)

[nuubie]

"troubled spongemaker SpongeTech" in the news:

Lawsuit soaks up plaintiffsBy KAJA WHITEHOUSE

Last Updated: 2:45 AM, October 14, 2009

Posted: 12:13 AM, October 14, 2009

A New York attorney who filed a class-action lawsuit against troubled spongemaker SpongeTech last Friday says he's been bombarded by calls from jilted investors.

"I've never, ever, ever gotten so many investors to contact me and I've been in a lot of these cases," said Larry Rosen of the Rosen Law Firm."

It suggests the shareholder base is larger than would make sense for this market cap," he said.

The penny-stock company, which is under investigation by the Securities and Exchange Commission, recently said it authorized as many as 3 billion shares -- more than eBay and IBM combined have outstanding.

Rosen's compliant, filed in the Southern District Court in Manhattan, alleges that SpongeTech and its officials "violated federal securities laws by issuing false and misleading financial information to investors and engaging in a stock manipulation scheme."

The lawsuit alleges the company, which sponsors professional sports teams, misrepresented the company's sales revenues and improperly forged attorney opinion letters to sell stock A New York attorney who filed a class-action lawsuit against troubled spongemaker SpongeTech last Friday says he's been bombarded by calls from jilted investors.

"I've never, ever, ever gotten so many investors to contact me and I've been in a lot of these cases," said Larry Rosen of the Rosen Law Firm.

"It suggests the shareholder base is larger than would make sense for this market cap," he said.

The penny-stock company, which is under investigation by the Securities and Exchange Commission, recently said it authorized as many as 3 billion shares -- more than eBay and IBM combined have outstanding.

Rosen's compliant, filed in the Southern District Court in Manhattan, alleges that SpongeTech and its officials "violated federal securities laws by issuing false and misleading financial information to investors and engaging in a stock manipulation scheme."

The lawsuit alleges the company, which sponsors professional sports teams, misrepresented the company's sales revenues and improperly forged attorney opinion letters to sell stock.

http://www.nypost.com/p/news/business/lawsuit_soaks_up_plaintiffs_z1e6jnIO7bwT5XuABwpnZP