NEW YORK, NY / ACCESSWIRE / March 12, 2019 / Pomerantz LLP announces that a class action lawsuit has been filed against 22nd Century Group, Inc. (''22nd Century'' or the ''Company'') (NYSE American: XXII) and certain of its officers and directors. The class action, filed in United States District Court, Eastern District of New York, and indexed under 19-cv-00553, is on behalf of a class consisting of all behalf of persons and/or entities who purchased or otherwise acquired 22nd Century securities between February 18, 2016 through October 25, 2018, both dates inclusive (the ''Class Period''), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the ''Exchange Act'') and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased 22nd Century securities between February 18, 2016, and October 25, 2018, you have until March 22, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
22nd Century is a company that purportedly has the technology and plant breeding expertise to regulate the level of nicotine (and other nicotinic alkaloids) in tobacco plants. The Company has touted how it is able to grow tobacco with ''up to 97% less nicotine than conventional tobacco.''
The complaint alleges that Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) 22nd Century's stock was prone to manipulation through paid stock promotions; (2) such conduct would subject 22nd Century to heightened regulatory scrutiny by the SEC; and (3) consequently, 22nd Century's public statements were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On February 2, 2018, Seeking Alpha published an article by Fuzzy Panda Research stating that 22nd Century's stock price had been inflated through various paid stock promotion articles from 2014 through 2017, some of which had disclosed the paying party and amount, and others which did not.
On this news, shares of 22nd Century fell $0.35 per share or over 11% to close at $2.73 per share on February 2, 2018.
Then, on October 25, 2018, Fuzzy Panda Research disclosed in another SeekingAlpha article that its Freedom of Information Act (''FOIA'') requests from the SEC for ''all documents in the possession of SEC that pertain to investigations regarding 22nd Century Group (XXII) for the time period January 1, 2016, through July 16, 2018'' had been denied. According to the article, the SEC would not release the documents because doing so could ''reasonably be expected to interfere with ongoing enforcement proceedings.'' The article built on a March 7, 2018 Seeking Alpha article by Sharesleuth which explained how a ''stealth promotion network'' posted positive articles about the Company at suspicious times in 2017, including (i) after investors took part in placements and/or warrant exercises, enabling them to profit as 22nd Century's share price surged; and (ii) immediately before and after 22nd Century had announced it was selling new shares at discount prices in October 2017.
On this news, shares of 22nd Century fell $0.11 per share or over 4% to close at $2.45 per share on October 25, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
SOURCE: Pomerantz LLP
View source version on accesswire.com: