CASES
Alternate Energy Holdings, Inc.
Class Period: Sep 20, 2006 to Dec 14, 2010
Summary of Case:
A securities class action has been filed against Alternate Energy Holdings,Inc. (AEHI) (Alternate Energy" or the "Company") on behalf of all securities purchasers from September 20, 2006 through December 14, 2010, inclusive ("Class Period") in the United States District Court of Idaho.
The complaint alleges that throughout the Class Period, which begins with Alternate Energy's incorporation in September 2006, Allternate Energy and certain of its officers and directors engaged in a scheme to manipulate and artificially inflate the market price of Alternate Energy stock by (1) paying stock promoters to creating artificial demand in the marketplace through end of day stock purchases; (2) misrepresenting that Company officers and directors never sold any shares of the Company's stock; and (3) misrepresenting the Company's true financial condition and potential business prospects.
More specifically, the complaint alleges that defendant Donald L. Gillispie ("Gillispie") engaged in a scheme by which he hired stock promoters and issued press releases in order to artificially inflate the value of the Company's stock. He never disclosed these activities to the public. Indeed, the Company issued a number of public statements assuring the investing public that Gillispie had not sold any of his shares of the Company. In reality, Gillispie sold more than a million shares of the Company during the Class Period, and thereby collected considerable monies by virtue of his fraudulent scheme.
On September 7, and September 30, 2010, the Company issued press releases stating that no officer or director of the Company, since its inception, had sold any of his or her shares of the Company.
The complaint alleges that these statements were patently false as defendant Jennifer Ransom ("Ransom"), Alternate Energy's Secretary and Senior Vice-President of Administration had sold one million shares of the Company between June and September 2010 at the behest of defendant Gillispie.
It was not until December 16, 2010, the complaint alleges, when the SEC instituted a civil action against Alternate Energy and defendants Gillispie and Ransom, that any reasonable investor or class member could have reasonably suspected that the Company's statements with respect to Gillispie's stock positions were false and misleading. Nor could have investors reasonably suspected that the Company and certain of its officers and directors were engaging in a scheme to artificially inflate the Company's stock price.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.