First Choice Healthcare Solutions, Inc
Company Name | First Choice Healthcare Solutions, Inc |
Stock Symbol | FCHS |
Class Period | April 01, 2014 to November 14, 2018 |
Lead Plaintiff Motion Deadline | May 28, 2019 |
Status | 1 |
On November 14, 2018, both a criminal indictment and civil action were filed by the U.S. Department of Justice and Securities and Exchange Commission respectively against then-Chief Executive Officer, President, and Board Chairman Christian Romandetti, Sr., along with other alleged co-conspirators. Romandetti was charged regarding his connections with the arrangement of a multi-million dollar pump-and-dump scheme in which the price and volume of First Choice shares was falsely controlled through artificial generation of trading volume and price movements, as well as materially false representations and omissions in communications with investors.
On this news, shares of First Choice fell $0.66 per share, or over 65%, to close at $0.35 on November 15, 2018, thereby injuring investors.
The complaint filed in this class action alleges that 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) defendants retained Elite Stock Research, Inc. to falsely promote the Company to materially inflate the price of First Choice stock; (2) the Company’s CEO participated and personally profited from a scheme to materially inflate the price of First Choice securities through an unlawful, paid promotional campaign; (3) defendants were in violation of First Choice’s internal compliance policies by participating in the pump and dump scheme; and (4) a primary cause of fluctuations in First Choice’s stock price was the unlawful campaign, in which Romandetti directly participated, that caused the price of First Choice stock to be inflated while at the same time allowed others to dump their First Choice stock for profit.
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