Cohen Milstein Sellers & Toll PLLC Announces the Investigation of Poseidon Concepts Corp.

WASHINGTON–(BUSINESS WIRE)– Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Poseidon Concepts Corp. (“Poseidon” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Several class action lawsuits were filed in the U.S. District Court for the Southern District of New York by other law firms on behalf of purchasers of the publically traded common stock of Poseidon between May 9, 2012 and February 14, 2013, inclusive (the “Class Period”).

The complaints allege that Poseidon and certain of its officers and directors (“Defendants”) issued false and misleading statements and omitted material information concerning the Company’s business prospects, financial performance, and true financial condition.

On December 27, 2012, Poseidon suspended its dividend payments and formed a Special Committee to “review and address various issues arising from the recent write-off of certain accounts receivable and the evolving business plan of the Company.”

On February 14, 2013, Poseidon announced the results of the Special Committee investigation, reporting that it would have to restate its results for the first three quarters of 2012. The Committee found that approximately $95 million to $106 million of the $148.1 million in revenue the Company had reported for the first three quarters of 2012 “should not have been recorded as revenue,” and additionally found that approximately $94 million to $102 million of the Company’s reported accounts receivable at September 30, 2012 “should not have been recorded” as such. The price of Poseidon shares fell from $0.89 to $0.28 on February 14.

Cohen Milstein encourages all investors who purchased Poseidon common stock in the United States on the OTC market (OTC: POOSF) between May 9, 2012 and February 14, 2013, or former employees with information concerning this matter, to contact the firm.

If you purchased Poseidon shares in the United States on the OTC market and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein‘s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at stoll@cohenmilstein.com. If you wish to serve as lead plaintiff, you must move the Court no later than April 24, 2013 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that …read more
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