Robbins Umeda LLP Announces an Investigation of Valence Technology, Inc.
SAN DIEGO–(BUSINESS WIRE)–
Shareholder rights firm Robbins
Umeda LLP announces an investigation into Valence Technology, Inc.
(OTC Markets: VLNCQ). Concerned shareholders who would like more
information about their rights and potential remedies can contact
attorney Gregory E. Del Gaizo at (800) 350-6003, email@example.com,
or via the shareholder
information form on the firm’s website.
Robbins Umeda LLP is investigating whether officers and directors at
Valence Technology issued materially false and misleading statements to
investors that were designed to deceive the market and artificially
inflate the company’s stock price. In particular, the firm is examining
allegations that senior officials at Valence Technology misled investors
by providing false statements regarding the company’s capital position.
Specifically, when asked about the balance sheet during the company’s
appearance at Jefferies Global Clean Technology Conference on February
23, 2012, Mr. Robert Kanode, Valence President and Chief Executive
Officer, stated that “[m]oving forward our cash needs will not be
significant.” In contrast, on March 31, 2012, the company submitted its
annual report on Form 10-K with the U.S. Securities and Exchange
Commission for fiscal year ended March 31, 2012, identifying its risk
factors, including the company’s ongoing losses, lack of liquidity and
debt obligations. The Form 10-K notes that it has experienced
significant operating losses in the current and prior fiscal years, that
its limited financial resources could materially affect its business,
and that if further financing is not obtained, the company may be forced
to cease operations and liquidate assets.
On July 12, 2012, Valence Technology declared bankruptcy. Following the
emergence of this fact, shares of Valence Technology 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.
Robbins Umeda LLP highlights that one option available to Valence
Technology shareholders is filing a class
action lawsuit on behalf of investors to recover
damages incurred as a result of the wrongdoing.
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. For more information, please go to http://www.robbinsumeda.com.
Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/valence-technology-inc/
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