While ECTY probably wasn't on the 100% up and up on their disclosures to investors, all of ECTYs "misdeeds" really go back to Reed, not to Brar. Reed bailed after he'd milked ECTY and put Brar in charge. The lawsuits really need to go after Reed.
Follow the history of stock sales by Reed in the previous years, match that up to the SEC investigation and then the timing of Brar becoming CEO.
ECTY itself is "clean", Reed is the one the lawsuits are really targeted towards.