KiOR, Inc. Sued by Investor
Robbins Arroyo LLP announce that an investor of KiOR, Inc. (NASDAQ: KIOR) (“KiOR”) has filed a complaint in the U.S. District Court for the Southern District of Texas. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between August 14, 2012 and August 7, 2013 (the “Class Period”). KiOR is a renewable fuels company engaged in the production and sale of cellulosic gasoline and diesel from non-food biomass.
KiOR Accused of Making False and Misleading Statements
According to the complaint, KiOR made false and/or misleading statements regarding the company’s business operations and prospects. Specifically, the complaint alleges that, throughout the Class Period, the company and certain of its officers and directors made false and misleading statements regarding the timing of projected production levels of biofuels at the company’s Columbus, Mississippi facility. Further, the complaint alleges that, despite numerous setbacks and missed production targets, KiOR continued to reassure investors that the company remained on schedule to produce commercially meaningful levels of biofuel. As a result of these false and misleading statements and omissions, KiOR shares traded at artificially inflated prices during the Class Period.
KiOR Stock Price Drops on Failure to Attain Biofuel Production Goals
On August 8, 2013, according to the complaint, KiOR revealed that for the second quarter 2013, the company had only shipped 75,000 gallons of biofuel, substantially below the target of 300,000 – 500,000 gallons promised to investors in May 2013. On this news, KiOR shares fell $2.12 per share, or 44%, during the next six trading sessions, from a close of $4.76 per share on August 7, 2013, to a close of $2.62 per share on August 15, 2013.
If you invested in KiOR and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003 or you can complete the form below and we will contact you directly.