| Company: | Rentech, Inc, |
| Ticker Symbol: | RTK |
| Class Period: | Feb-8-08 to Dec-15-09 |
| Date Filed: | Dec-31-09 |
| Lead Plaintiff Deadline: | Mar-1-10 |
| Court: | Central District of California |
| Allegations: | |
The complaint charges Rentech and certain of its officers and directors ("Defendants") with violating the Securities Exchange Act of 1934. Rentech is a provider of "clean energy solutions" and developer of synthetic fuels and electric power from carbon-containing materials such as biomass, waste and fossil resources.
The complaint alleges that, throughout the Class Period, defendants made materially false and misleading statements regarding the Company's financial results and compliance with Generally Accepted Accounting Principles ("GAAP"). Specifically, the complaint alleges that defendants failed to disclose: (a) certain deposit payments associated with the Company's forward contracts for natural gas purchases were incorrectly reported on Rentech's balance sheets as inventory rather than deposits; (b) as a result, the Company's financial results were overstated during the Class Period; (c) the Company had failed to properly recognize deposits on its balance sheets in violation of GAAP; (d) the Company lacked adequate internal and financial controls; and (e) as a result of the above, the Company's financial statements during the Class Period were materially false and misleading at all relevant times.
On December 14, 2009 and December 15, 2009, Rentech announced that the Company had improperly reported certain deposit payments as inventory on its balance sheets in various filings with the SEC in 2008 and 2009. In response to the Company's announcement, Rentech shares plunged to $1.27 a share on December 18, 2009, representing a 25% drop from the stock's opening price on December 14, 2009.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
