Los Angeles-At least three law firms report that they have commenced class actions in the U.S. District Court for the Central District of California on behalf of purchasers of Rentech Inc. securities during the period Feb. 8, 2008-Dec. 15, 2009. All three are seeking a lead plaintiff for the case. The suits charge that Rentech and certain officers and directors made materially false and misleading statements regarding the company’s financial results. The suits are in response to a restatement of earnings issued by Rentech in December (GM Dec. 21, p. 14). In response to the Rentech announcement, shares plunged to $1.27 on Dec. 18, 2009, representing a 25 percent drop from the stock’s opening price of $1.70 on Dec. 14, 2009, when Rentech revealed the restatement, according to one of the firms. As of Jan. 7, 2010, Rentech shares closed at $1.26. The suits seek to recover all damages on behalf of the purchasers of the securities during the class period. Rentech said it believes the allegations are without merit and intends to vigorously defend the actions.
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