Rigrodsky & Long, P.A.
& Long, P.A. announces that a complaint has been filed in the
United States District Court for the Southern District of New York on
behalf of all persons or entities that purchased the common stock of
Poseidon Concepts Corp. ("Poseidon" or the "Company") (OTC PINK: POOSF)
between May 9, 2012 and February 14, 2013, inclusive (the "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").
If you purchased shares of Poseidon during the Class Period, or
purchased shares prior to the Class Period and still hold Poseidon, and
wish to discuss this action or have any questions concerning this notice
or your rights or interests, please contact Timothy
J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825
East Gate Boulvard, Suite 300, Garden City, NY at (888) 969-4242, by
e-mail to firstname.lastname@example.org,
or at: http://www.rigrodskylong.com/investigations/poseidon-concepts-corp-poosf.
The Complaint alleges that throughout the Class Period, defendants made
materially false and misleading statements, and omitted materially
adverse facts, about the Company's business, operations and prospects.
Specifically, the Complaint alleges that: (a) the Company improperly
recorded approximately $95 million to $106 million as revenue in the
Company's financial statements; (b) the Company improperly recorded $94
million to $102 million as accounts receivable in the Company's
financial statements; and (c) that as a result, the first, second and
third quarter 2012 financial statements would need to be restated and
could not be relied upon by investors, along with all previous guidance
with respect to the Company's business. As a result of defendants' false
and misleading statements, the Company's stock traded at artificially
inflated prices during the Class Period.
According to the Complaint, on May 9, August 8, and November 14, 2012,
Poseidon issued materially false and misleading press releases
announcing the Company's financial and operating results. Further, the
results issued in the November 14, 2012 press release were below market
expectations for the Company, and as a result, shares in Poseidon stock
fell approximately 62% from its previous closing price, closing at $4.95
per share on November 15, 2012.
Then, on December 27, 2012, Poseidon issued a press release announcing
the formation of a Special Committee to evaluate and resolve various
issues stemming from the Company's write-off of some of its accounts
receivable and evolving business strategy. The findings of the Special
Committee, announced in a press release on February 14, 2013, revealed
to the public news of the improperly recorded revenue and accounts
receivable, as well as the Company advising that all previous guidance
should no longer be relied upon. On this news, shares in Poseidon fell
almost 70%, closing at $0.28 per share on February 14, 2013, from a
close of $0.89 per share on February 13, 2012, on volume of over 15
If you wish to serve as lead plaintiff, you must move the Court no later
than April 23, 2013. A lead plaintiff is a representative party acting
on behalf of other class members in directing the litigation. In order
to be appointed lead plaintiff, the Court must determine that the class
member's claim is typical of the claims of other class members, and that
the class member will adequately represent the class. Your ability to
share in any recovery is not, however, affected by the decision whether
or not to serve as a lead plaintiff. Any member of the proposed class
may move the court to serve as lead plaintiff through counsel of their
choice, or may choose to do nothing and remain an absent class member.
& Long, P.A. did not file the Complaint in this matter, the
firm, with offices in Wilmington, Delaware and Garden City, New York, regularly
litigates securities class, derivative and direct actions, shareholder
rights litigation and corporate governance litigation, including
claims for breach of fiduciary duty and proxy violations in the Delaware
Court of Chancery and in state and federal courts throughout the United
Attorney advertising. Prior results do not guarantee a similar outcome.
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