NEW YORK, June 29, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Uranium Energy Corp. (“Uranium Energy” or the “Company”) (NYSE:UEC) and certain of its officers. The class action, filed in United States District Court, Southern District of Texas, and docketed under 15-cv-01862, is on behalf of a class consisting of all persons or entities who purchased Uranium Energy securities between October 14, 2014 and June 17, 2015 inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Uranium Energy securities during the Class Period, you have until August 28, 2015 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 rswilloughby@pomlaw.com 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 number of shares purchased.
Uranium Energy engages in the exploration, extraction, and processing of uranium concentrates on projects located in the United States and the Republic of Paraguay. As of July 31, 2014, it had mineral rights in uranium projects located in the states of Arizona, Colorado, New Mexico, Texas, and Wyoming, as well as in the Republic of Paraguay.
The Complaint alleges throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) Uranium Energy stock achieved an unsustainable valuation by using paid stock promoters, yet failed to disclose the use of such promoters in its regulatory filings pursuant to Section 17(b) of the Securities Act of 1933; and (2) as a result of the foregoing, Uranium Energy’s public statements were materially false and misleading at all relevant times.
On June 18, 2015, an article published by TheStreetSweeper.org reported that Uranium Energy was using undisclosed paid stock promotors to increase the value of Uranium Energy shares. According to a report by hotstocked.com, quoted in the article above, Uranium Energy has caused to be published at least eight separate stock promotions, for which the Company, or third parties controlled by the Company, paid over $200,000. Some of the stock promotion campaigns, from promotors named “LightningStockPicks,” “Micro Stock Profit,” “InvestorSoup.com,” “The Penny Stocks Finder,” “Stock Preacher,” and “Future Money Trends” include headlines such as “Chart Is Glowing Green! (UEC) #1 NYSE Play Today,” “UEC Just Hit Critical Mass,” and “(UEC) #1 NYSE Play Today.”
On the following day, the Company issued a press release denying the allegations and stating that the article published by TheStreetSweeper.org had no merit. However, the article did not address the allegations related to the undisclosed paid stock promotions and market was unconvinced.
As a result of this news, shares of Uranium Energy declined, dropping $0.62 or over 25.6% on unusually heavy volume, to as close at $1.80 on June 19, 2015. Over two trading days, shares fell $0.80 or over 30.7%.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, 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 70 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.