An energy company noted that it came to a securities class action settlement with shareholders in order to resolve outstanding litigation.
Alternate Energy Holdings, Inc., noted that the settlement was announced by Judge Lynn Winmill, and finalized on Oct. 31, 2012. The agreement would have Alternate Energy Holdings pay shareholders $450,000, an amount that was agreed in April 2012 during a conference. The company’s leaders will now have no wrongdoing admitted through the settlement, as the action aimed to help cut any further litigation expenses.
Law office Rigrodsky and Long, P.A., explained that the securities class action lawsuit was filed in the U.S. District Court for the District of Idaho, and included all shareholders who acquired stock in the company during the class period between Sept. 20, 2006 and Dec. 14, 2010.
Allegations in the lawsuit included the company potentially violating the Securities Exchange Act of 1934. Specifically, this was due to the company possibly participating in actions that inflated the stock price artificially. This misrepresented the total value and financial standing of the company.