Robbins Umeda LLP Files a Class Action Suit Against Certain Former Officers of Valence Technology, Inc.
September 11, 2012 (San Diego, CA) – Robbins Umeda LLP announces it has commenced a federal securities class action in the U.S. District Court Southern District of New York, on behalf of purchasers of Valence Technology, Inc. (OTCQB: VLNCQ) (“Valence” or the “Company”) shares between August 3, 2011 and July 12, 2012 (the “Class Period”). Concerned shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Gregory E. Del Gaizo at (800) 350-6003.
The complaint alleges that during the Class Period, defendants issued material false and misleading statements regarding the Company’s business and financial results. Specifically, the complaint alleges that defendants knew or recklessly disregarded the fact that Valence was headed for bankruptcy, downplayed the severity of the Company’s capital position, and misled investors about the Company’s business health and future prospects by evading inquiries concerning Valence’s liquidity and assuring the market of the Company’s available alternatives for raising capital.
Despite making positive statements, the Company did not have enough cash to meet its outstanding obligations. On July 12, 2012, Valence issued a press release disclosing to investors that the Company filed a voluntary petition for chapter 11 business reorganization in the U.S. Bankruptcy Court for the Western District of Texas. When the true state of the Company’s business health became public, Valence’s shares lost approximately 92% of their value. After closing at $0.65 per share on July 13, 2012, shares of Valence Technology common stock closed on July 16, 2012 at just $0.05 per share.
If you purchased or otherwise acquired Valence stock during the Class Period and wish to serve as lead plaintiff, you must move the Court no later than November 12, 2012. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Gregory E. Del Gaizo, Esq. of Robbins Umeda LLP at 800-350-6003 or via the shareholder information form.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.