Kaplan Fox And Kilsheimer LLP have announced they are probing claims on behalf of 22nd Century Group, Inc. (NYSE:XXII). Kaplan is investigating on behalf those shareholders that purchased the securities between February 18, 2016, and October 25th last year.
So far a complaint has been filed on the same in the United States District Court in New York on behalf of the 22nd Century investors who bought securities during the Class Period.
Inflated share prices
The complaint states that Fuzzy Panda Research on February 2 last year demonstrated that 22nd Century employed a rampant paid stock promotion scheme that aimed at inflating their share prices. After breaking of the news, 22nd Century experienced a drop in the price of their stock to $0.35 per share which was more than 11% to closing at $2.73 on that day.
SEC investigation
The complaint further indicates that on October 25, 2018, Fuzzy Panda Research, the Seeking Alpha contributor published another article that suggested that the Securities Exchange Commission is currently investigating the potential involvement of the company in the pump and dump scheme.
Fuzzy Panda Research indicates that they requested the SEC to release documents on the same under the Freedom of Information Act. However, the SEC denied their request stating that releasing the records could reasonably interfere with the proceeds of the investigation. The news led to a decline in the share price of 22nd Century by 4.3% closing at $2.45 on October 25, 2018.
Members of the proposed Class that was affected by the scheme may be required to move the court on not later than March 22 this year to serve as the lead plaintiff of the supposedly affected class. Investors do not need to seek to be lead plaintiffs for them to share any potential recovery. Those willing to discuss the complaint or the investigation can contact Kaplan Fox through mail at pmayer@kaplanfox.com or through phone 800-290-1952.