Rentech, Inc.

Class Period: Feb 8, 2008 to Dec 15, 2009

Lead Plaintiff Deadline: Mar 1, 2010 + Deadline passed

Summary of Case:

 A securities class action has been filed against Rentech, Inc. (RTK) ("Rentech" or the "Company") on behalf of all securities purchasers from February 8, 2008 through December 15, 2009, inclusive ("Class Period"), in the United States District Court for the Central District of California.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding Rentech's financial results and compliance with Generally Accepted Accounting Principles ("GAAP"). Specifically, during the Class Period, the Company improperly reported certain deposit payments associated with natural gas purchase contracts as inventory, which resulted in artificially inflated prices during the Class Period for Rentech shares.
 
On December 14, 2009 and December 15, 2009, Rentech revealed that the Company would have to restate previously issued financial statements from 2008 to 2009 due to accounting errors related to the treatment of forward gas purchase contracts and inventory valuation.
 
As a result of defendants' false statements and omissions, Rentech stock traded at artificially inflated prices during the Class Period.  After the Company revealed its accounting issues to the market, Rentech shares plunged to a low of $1.27 a share on December 18, 2009, representing a 25%  drop from the stock's opening price on December 14, 2009 and a 46% drop from the stock's high trading price during the Class Period.
 

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.