Growlife Inc (OTCMKTS:PHOT) Gets Hit With A Securities Fraud Class Action Suit

Growlife Inc (OTCMKTS:PHOT) was on 18th April served with a legal notice, in which The Rosen Law Firm, P.A. disclosed that it has filed a class action lawsuit against the firm on behalf of those aggrieved share holders who had bought into the company issued common stock during the 14th November’13  and 9th April’14 time frame. The suit is seeking courts intervention to retrieve damages from the firm for running rough shod on the federal security trading laws.

Law Suit Alleges Intention Cover Up Of Poor Financial Condition

The lawsuit which has been filed in front of the U.S. District Court for the Central District of California alleges that Growlife Inc (OTCMKTS:PHOT) executives in their capacities of key stake holders in the firm had issued materially false and misleading data for public dissemination with the intention of concealing the true and dire state of the company finances.

SEC Had Suspended Trading In Stock

This latest legal trouble for the Woodland Hills head quartered Medical Marijuana player came about after the U.S. Securities and Exchange Commission announced on 10th April that it was ordering the temporary suspension of trading in the stock and shares issued by Growlife Inc (OTCMKTS:PHOT). In Its order the Securities regulator had indicated that, “Commission is temporarily suspended trading in the securities of PHOT because of questions that have been raised about the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in PHOT’s common stock.”

In Run Up To Suspension

On 9th April close of business, which was the last trading day before SEC supervised suspension came into effect the stock was trading at around 50 cents per share and had jumped up by nearly 145 percent during trading over the past 3 months, on the back of sustained buying by investors during the time period represented by the class action suit.

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